WYG to close ailing Irish business

The Leeds-based group, which has endured a painful restructuring in recent years, said the business in the Republic of Ireland has experienced “extremely challenging trading conditions in recent years as a result of the wider economic conditions in Ireland and the severe decline in the Irish construction market”.

WYG said the business, which was built up through 12 acquisitions between 1999 and 2008, is burdened with unsustainable property costs and claims associated with those acquisitions.

The group said it made every effort to reshape the business and its property portfolio, but the obstacles proved “insurmountable”.

No figure was put on how many jobs will be lost. It believes liquidating the business will save around 5m euros.

Chief executive Paul Hamer said: “We greatly regret the impact that this decision will have on all those associated with the Irish business. However, despite the very best efforts of its management team, it has become clear that the scale and nature of the legacy issues it faces are ultimately insurmountable. This move is the only responsible course of action for WYG’s board to take.”

The group added its Northern Irish business continues to trade profitably and is unaffected by the property issues that have impacted the Irish business.

It has submitted an offer to the provisional liquidators, Paul McCann and Stephen Tennant of Grant Thornton, for the Northern Irish Business. But it said there is no certainty this offer will be accepted, and the liquidators will seek further expressions of interest in the Northern Irish business over the next few days.