Thahimer subsidiary MGT Construction files for Chapter 7 bankruptcy
The construction arm of Cushman & Wakefield | Thalhimer, MGT Construction Management Inc., filed for Chapter 7 liquidation Thursday in the U. S. Bankruptcy court in Richmond. The voluntary filing was characterized by the commercial real estate firm as one of the final steps in closing out MGT’s business.
A wholly-owned subsidiary of Thalhimer, MGT has been winding down operations for several months following financial challenges and the filing of a lawsuit last fall against top executives of the Henrico County-based commercial real estate company.
“Closing down a business is difficult for everyone involved,” Michael Kain, the chief restructuring officer of MGT Construction said in a statement. “Over the last several months, MGT has focused on winding down its operations. We have been working to complete the existing project backlog for our clients, or in some cases, transferring projects to other construction firms for completion.”
The filing includes a long list of creditors, estimated at 200 to 999 companies. They include a broad range of building suppliers from in and out of the state such as 84 Lumber and Home Depot Credit Services. Local companies listed as creditors include American Door and Glass in Ashland, 510 Architect LLC in Richmond, Advantage Plumbing and Heating, Richmond, and AFM Contracting in Midlothian. The court document listed assets of $100,001 to $500,000 and liabilities of $10 million to $50 million.
MGT has been involved in construction projects in the mid-Atlantic region for 25 years including the conversion of commercial buildings into apartments. A recent project in the Manchester area of Richmond, City View Landing, involved renovating warehouses into apartments and office space at the former South Plant site for Reynolds Metals Co.
Kain noted in a statement that while MGT had its share of success, recent struggles made it clear that the time has come to close.
“Our strength resides in our commercial real estate business,” Lee Warfield, president and CEO, Cushman & Wakefield | Thalhimer, said in a statement. “Thalhimer is a very successful firm that has served this region for more than 100 years. Our attention is focused exclusively on serving our clients and growing our commercial real estate brokerage, property management, acquisition and development business.”