Less than a week after Millénium Construction, a division of the Huot Group in Quebec City, stopped work, legal hypothecs have reached more than $7 million and they are increasing on the part of suppliers who want to be paid.
• Read also: The majority of construction sites on hold for Groupe Huot
According to Terram Technologies, which continuously monitors land registers, there have been more than 44 legal mortgages in three days, mainly to Millénum Construction, for an amount of nearly $7.3 million.
For many companies, the stoppage of construction sites and the non-payment of sums due have a huge impact. This is notably the case of Armoires Orléans in Quebec, which registered a legal hypothec of $787,981.
“This situation puts us in an extremely vulnerable position. (…) We must review the business plan. We just bought the business. We are young entrepreneurs. It changes perspectives. It’s sad and it’s a pity as a situation. We consider ourselves lucky to be solid, because the company has been running for 35 years and we are well surrounded, but it hurts,” said Joanie Tremblay, co-owner.
She and her partner, François Bouchard, acquired Armoires Orléans last June. The company has fabricated and installed the kitchen and bathroom cabinets for phase 1 of the Ariela project and is currently awaiting payment.
“It’s a business relationship that was imposed on us since it’s a contract that was signed by the former owners,” she added.
“We will tell each other, they have always taken a very long time to pay. Their deadline is rarely respected,” said M.me Tremblay.
Maxi-Paysage of Lévis registered a legal hypothec of $568,861 for five projects. The stoppage of the Millénium construction sites forced this company to lay off about thirty workers.
“We meet with the employees to explain the situation to them,” said Carl Tanguay, president, who noted that his client’s payments had been more difficult since last fall.
Last week, the Huot Group put most of its construction sites on hold pending the establishment of a new governance structure. We know that the company obtained private financing to relaunch its activities. Groupe Huot declined our interview request.
