Shock as Taggart Holdings collapses
Thursday, 23 October 2008
LOCAL business, Taggart Holdings, one of Northern Ireland's largest building companies, has been forced to call in administrators in yet another blow to the economy here.
Pricewaterhouse Coopers has been appointed as the administrator of Taggart Holdings, one of the largest residential building firms in Ireland, North and South.
The firm, owned by Drumsurn brothers John and Michael Taggart, employed more than 150 people 18 months ago, has just 15 on its books.
Plans to build thousands of homes worth hundreds of millions of pounds on more than 25 sites - many in the greater Dublin area and Hartlepool in the north-east of England - have had to be abandoned.
John and Michael, the firm's directors said the development of schemes in Luxembourg as well as Mullingar and Navan in the Irish Republic would continue.
Michael Taggart described the appointment of an administrator at the request of the Ulster Bank and Bank of Ireland as "deeply regrettable" and a sign of the seriousness of the crisis now facing the construction and property sectors.
Gareth Calow, administrator from Pricewaterhouse Coopers said: "Faced with changing market conditions, the group has experience a lengthy period of significant financial difficulty, causing uncertainty for both staff and creditors.
“These appointments will now enable an orderly sale of business and assets, including the company's development sites and land portfolio.
“Our immediate priority is to carry out a full assessment of the financial position and trading activities of the companies in the UK and in Ireland and to formulate an appropriate strategy for the way forward."
PwC will also act as receivers for Taggart Homes Ireland and Taggart's other Irish-registered companies.
The brothers became well known business leaders and attracted much attention for traveling by helicopter from the local area. They have featured in the Sunday Times Rich List for the last two years in a row, with an estimated joint worth of £95 million. Local UUP Councillor Jack Rankin described the situation as "alarming".
He added: "It is very disappointing and extremely alarming that such a well known and renowned firm from the area is in such terrible difficulties.
“I am very sorry to see the they have gone into administration.
“We have had so many blows to the economy here with the loss of jobs at Seagate and HUCO, this really is the last news the borough needed.
“I certainly hope this is not the start of a domino effect that will see more companies ending up in the same position."
Meanwhile Coleraine's economy has also suffered another blow as almost 100 jobs are being axed from NI Water and AVX Ltd.
NI Water is shedding about 30 jobs at Coleraine by April 2009 and AVX Ltd is axing 33 full time jobs by the end of November, in addition to 30 contract workers at the Hillman's Way factory who are clocking off for the last time this Friday (October 24).
Coleraine's AVX Ltd employs 418 people who manufacture ceramic capacitors for aircraft, cars, and satellites. Management moved production away from the traditional commodity business to the higher value sectors some years ago. The facility is part of the Japanese owned Kyocera Group Company.
