Ahead of an auction on Tuesday at Wilsons in Mallusk to sell off the assets of a long-standing Belfast demolition company which went into administration in November 2023, the former owner of the business has spoken of his “deep sadness” at the collapse.
McCormack Demolition in Mallusk and its sister company McCormack Site Services (Ireland) Ltd, which had been in business for more than 40 years, called in administrators from Keenan CF in November.
The firm’s previous shareholder and director Eamonn McCormack (63), who had been involved with the family business since its foundation, has been speaking of his hopes for the future.
It comes following an article in the Irish News on February 16 which revealed that the estimated payment for unsecured creditors could be in the range of 6.42p and 10.68p in the pound.
He said: “The McCormack family resigned as directors and shareholders of the company in November 2022 at the end of a two-year exit planning strategy.
“Financial checks were carried out at that time and the company was in excellent financial health, with significant cash reserves and a strong balance sheet.
“At no time during 2021/22 or at any previous time did the company seek or obtain additional finance to bridge cash flow.”
Mr McCormack - who has since set up a new company called Level Demolition - said: “HP agreements were put in place to finance new equipment as part of McCormack Demolition’s ongoing policy to maintain a modern fleet of equipment - not to bridge cash flow.”
And he added: “The McCormack family is deeply saddened by the collapse of the company and the difficulties this has created for creditors.”
Administrators anticipate recouping at least £1.3 million when the demolition firm’s entire assets - which include EC380 excavators, Brokk machines, containers, machinery attachments and construction equipment, commercial vehicles, and HGVs - come under the hammer.
