The sudden collapse of Style Group “will send shockwaves across the economy” and the Government will have to speed up its capital building programme to stop other firms going under, according to the Chamber of Commerce.
The business group was reacting to yesterday’s news that one of the island’s largest and most longstanding construction firms had stopped trading with immediate effect.
Style Group, which included AC Mauger and Style Windows, employed more than 200 people. Staff were told in a letter yesterday that the group was being wound up and while their roles remained, no wages would be paid.
It said: “I know this will come as a shock. Please understand this is not a reflection on your hard work or performance you have given so much, but the challenges facing the business have made it impossible to continue.”
We need tangible action now that will reduce the risk of further businesses getting into difficulty
Mike Osborne, Chair of Chamber’s Building, Housing and Environment Committee
In response to the news, Chamber said it was “deeply saddened” by the loss of the business from the sector, and for the loss of jobs. It added that it was also concerned for the impact of smaller firms who were trading with Style, who may now lose contracts and money.
It said: “It’s devastating for the hard working families affected by this and Chamber has the greatest sympathy for all those who are facing uncertainty following this news.
“The latest closures of well-established business will send shockwaves across the economy, with many secondary business affected by unpaid bills or cancelled work.
“Chamber is concerned the island will lose its capacity to deliver housing, schools and other essential projects if more firms go under. Costs will rise further as we rely more on off-island contractors and local jobs disappear.
“A strong, competitive local construction sector is critical to Jersey’s economy and community.”
Mike Osborne, Chair of Chamber’s Building, Housing and Environment Committee, called for “tangible action” to reduce the risk of further businesses getting into difficulty.
He said: “Government is the biggest client and influencer of activity in the construction sector, but it needs to understand the importance of the multiplier effect that comes through construction value into the broader economy.
“We want to work with Government, whenever and however possible, to bring activity to construction sites quickly.
“We need a procurement process that is rapid, reduces bureaucracy and supports local business.
“That will allow them to invest, employ, train and ultimately maintain a sector that will thrive again.”
Chamber of Commerce CEO Murray Norton said the business group has been “consistently calling” for the release of capital projects as
“The Government is by far the biggest customer for building and construction services,” he explained.
Mr Norton called for the Government’s ‘Investing in Jersey’ programme, published earlier this month, to be fast-tracked to provide an “urgently required pipeline for this sector”.
“Without headline projects that local construction companies can bid for, we are concerned that further closures in this sector will be inevitable and skilled tradespeople will be lost to Jersey’s economy,” he said.
“There is a clear need for a broad range of investment, including infrastructure, housing, repairs, maintenance and improvement. We must make it happen.”
The collapse of Style Group follows several high-profile exits from the construction sector in the recent years, including Camerons, JP Mauger, Mitchell, Kalmac and Nicholson Builders.
Ground engineering contractor Amplus also announced that it was closing down this week, but this is unrelated to Style Group going out of business.
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