ONE OF the midwest’s largest building firms, Paddy Burke Builders Ltd, which once employed over 110 people, has gone into receivership.
Documents have been lodged with the Companies’ Office confirming the appointment of a receiver for the Clare construction firm that was established in 1987.
The first sign that the Lisdoonvarna-based building firm was in difficulty was in October when Clare County Council terminated a contract with the builder for a 22-unit housing development in Shannon due to “the failure by the contractor to comply with the terms and conditions of the contract”.
Only three years ago, the company employed over 110 people and has constructed buildings in the commercial/retail, industrial, hotel/leisure and residential sectors, mainly in the west of Ireland over the past 23 years.
The last filed accounts for Paddy Burke Builders Ltd to the end of August 2008 show that the firm had increased its turnover to €46 million recording pre-tax profits of €299,963.
The accounts show that the company had accumulated profits of €4.3 million with bank loans totalling €11.9 million at the end of August 2008. AIB was listed as the firm’s bankers.
However, in the accounts, an independent auditor, Michael Nagle of Ennistymon, questioned the value of €18.8 million placed by the company on finished projects and work in progress as there was no active market for the stock owing to the unstable nature of the current construction industry environment.
The firm could not be contacted for a comment yesterday.
However, local Fine Gael councillor Martin Conway yesterday blamed debts owed to the company as the reason Paddy Burke Builders Ltd went into receivership.
Mr Conway said: “Paddy Burke was one of the good guys and the only reason the company has gone into receivership is the millions owed to it.
“He has been let down by other people.”
A spokesman for Clare County Council said in relation to the Shannon development that “a bond was in place on the Shannon scheme of houses and that via the bondsman, a tender for the completion works will be done early in 2011”.
He added: “It is anticipated that a completion contractor will be on site at the end of February, to carry out a three-month programme of completion works.”
