Less than a week after Millénium Construction, a division of the Quebec City-based Huot Group, went out of business, the number of legal foreclosures has reached more than $7 million, and it’s been growing by suppliers who want to get paid.
• Also read: The majority of construction sites are pending for Groupe Huot
According to Terram Technologies, which constantly monitors land records, there were more than 44 legal mortgages in three days, most of them to Millénum Construction, worth about $7.3 million.
For many companies, the shutdown of construction sites and non-payment of outstanding amounts has a significant impact. Such is the case of Armoires Orléans in Quebec, which recorded a legal mortgage of $787,981.
This situation puts us in a very vulnerable position. (…) We must revise the action plan. We just bought the business. We are young entrepreneurs. Change views. It’s sad and it’s unfortunate as a situation. “We consider ourselves fortunate to be so well established, because the company has been in business for 35 years and we are well surrounded, but it hurts,” said Joanie Tremblay, co-owner.
She and partner François Bouchard acquired Armoires Orléans last June. The company has manufactured and installed kitchen and bathroom cabinets for the first phase of the Ariella project and is currently awaiting payment.
“It is a working relationship that was imposed on us because it is a contract that was signed by the previous owners,” she added.
“We’ll tell each other, they always took a long time to pay. Their deadline is rarely respected,” M. said.I Tremblay.
Maxi-Paysage of Lévis recorded a legal mortgage of $568,861 for five projects. The shutdown of the Millennium construction sites forced this company to lay off about thirty workers.
“We are meeting with the staff to explain the situation to them,” said Carl Tanguay, the president, noting that his client’s payments have been more difficult since last fall.
Last week, Huot Group halted most of its construction sites pending the establishment of a new governance structure. We know that the company has received private funding to relaunch its activities. Groupe Huot declined the interview request.
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