THE COMPANY building homes at the Carnival Hub development has ceased trading, sacking all its staff.
However, Wokingham Borough Council says it has contingency plans and is considering options.
The center itself, including the new library which will open in September, has not been affected.
Mid Group began work on the Carnival Place homes last fall, having been appointed in March 2021. Last week its parent company folded and a decision was made to pull the plug on the company.
They were commissioned by the previous administration to build 55 apartments opposite the leisure center and close to the multi-storey car park and bowling alley.
The council selected the firm for its fabric-first approach to building which aims to make Carnival Place apartments some of the most energy efficient homes in the borough.
The building structures were formed using pre-cast panels made in a factory, and fitted with everything from bricks and insulation, before being delivered and set into place.
This approach also speeds up the construction process and helps reduce the impact of the construction site with fewer deliveries and a smaller workforce that needs to be on site.
The then executive member for regeneration, Charlotte Haitham-Taylor, said the flats would generate an annual income of £2m initially and then up to £6m after construction costs were paid.
“The residential elements of the regeneration are incredibly important,” she said. “Not only will they provide 55 new homes in the town centre, close to the park and fantastic new facilities at Carnival, but they will also help fund the new leisure centre, library and play area at Elms Field .”
In a statement released this week, the council’s new leader, Cllr Clive Jones, said: “Given the risks inherent in all construction contracts of this type, the Council has rigorous policies to deal with situations like this and is reviewing options and risks to decide the best way forward.
“It is premature for the council to comment too much at this stage but, as the project is well advanced, a review of the outstanding work will take place and, if necessary, the council will proceed with taking control of the site and appointing a new contractor to complete the final works.”
The leisure center was built by Pellikaan and opened on Monday 25 July – just in time for the start of the school holidays.
Cllr Jones added: “This situation has no impact on the Hub.
“The new library space at Carnival Hub is also intact and remains on track to open in September this year.”
