Construction company Cavalier Construction Company Limited and its sister company, Bobcat Bahamas Limited are in the process of appointing a liquidator to wind up the businesses, a press statement from the company revealed yesterday, explaining that a change in the way the construction market doles out jobs has left the giant do-all company out in the lurch.
The company revealed in the statement that it had ceased trading as of last week Wednesday and that all employees and staff have been made redundant.
“The situation we find ourselves in now is primarily the result of the significantly reduced turnover/workload for the company, which we have been experiencing now for a number of years,” the statement revealed.
“There has been a change in the construction market in the country, whereby the bigger projects previously carried out by the larger local general contractors, such as ourselves, are now typically carried out under construction management contracts.
“Under these arrangements, developers and owners employ a construction management team who then subcontract smaller packages of work to contractors/subcontractors. This business model effectively cuts the traditional general contractor out of the market.”
The statement added that Cavalier’s cash in hand was also not enough to help the company restructure its model to compete with those firms that have thrived under the new model.
“As a company having a number of longstanding employees, we have simply not had the cash reserves needed to restructure our operations due to the significant financial cost/liability associated with this exercise as set out in the employment legislation,” the statement pointed out.
“It is obviously a sad time for all involved. Cavalier Construction and Bobcat Bahamas have been a huge part of many peoples’ lives over the years. They are companies who throughout their long history have had loyal, hard-working, talented employees working for them, building throughout The Bahamas and beyond.
“Following the ceasing of trading, a liquidator will be appointed shortly who will work with the companies’ secured creditor and other creditors in order to facilitate an orderly winding up the affairs of both businesses.”
A letter from Bobcat Bahamas to its employees circulating around social media, reveals that employees were paid up to January 15, two weeks pay “in lieu of notice”.
The letter also acted as notice that their employment with Cavalier Bahamas was terminated with immediate effect “because of redundancy”.
“We recognize that you are owed additional redundancy pay in addition to this payment, under current employment legislation,” the letter stated.
“We therefore request you complete the employee contact details section below so that the appointed liquidator is able to contact you at a later date, should he/she become able in the future to distribute monies to terminated employees, who are owed redundancy pay by the company.”