International Consultant WYG is closing its loss making Republic of Ireland business and has appointed Grant Thornton as provisional liquidators.
WYG blamed “the severe decline in the Irish construction market” and the legacy of property costs and claims which accumulated as the Irish business was built up through a series of acquisitions between 1999 and 2008.
WYG directors estimated that the future legacy costs would be at least €5m and decided the cash would be better spent supporting growth plans at the main business.
At its peak, the Irish business employed around 800 people.
Paul Hamer, Chief Executive Officer of WYG 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.”
WYG in Ireland operates out of offices in Dublin, Cork and Sligo.
The Northern Irish business based in Belfast is profitable and continues to trade normally while WYG has submitted an offer to the liquidators to buy it back.