End of an era: GSC to cease operations
GSC Ltd, one of the Island’s largest air conditioning and mechanical companies, has shut down operations a victim of the economic downturn and severe construction slowdown.
The company, which has operated for 15 years and once employed as many as 63 people, said its workers at the new KEMH site were expected to continue on there with another employer, which it declined to name. And Airserv, the service and installation arm will continue.
A GSC spokesman said the company has faced a slew of challenges that came on together, including increased competition in the HVAC sector and a massive theft of what he said was more than $400,000 in Mitsubishi equipment. The spokesman said the insurers declined GSC’s claim due to lack of forced entry.
After that, the company, acquired from the previous owner in late 2008, said major construction work started to dry up and its Cayman operation was impacted by budget challenges in the islands and GSC had to withdraw from the venture.
GSC said in a statement last night: “It is with great regret that we provide notice that GSC Limited will be reducing its operations effective immediately.
“GSC Limited has existed for the past 15 years and has seen both upticks and downturns in the economy. Over the past three years we have experienced a continued decline in major construction. We have also experienced challenges in collecting amounts due from residential and commercial customers following the provision of service to them. This has had a negative impact on our cash flows and has impacted our ability to settle accounts as they have become due.
“We have therefore made the decision to reduce operations in the interest on stemming the continued deterioration of GSC Limited. GSC Limited has employed a number of persons in various trades. We have made arrangements for most of our employees to secure employment with alternate organisations. The majority of staff inclusive of Bermudians and non Bermudians were employed at the KEMH site.
“Those employees are expected to continue their employment on that site with another employer. That employer has been actively involved since the projects inception and has a solid understanding of the project. They also have the firm ability to ensure no delays or disruptions will occur as a result of this occurrence. In all these efforts will see the vast majority of staff accommodated as we seek to ensure continuity for their households and families.
“We would like to thank the Bermuda public for its support over the past many years and are saddened by this turn of events.”
GSC tomorrow was due in court today to face a petition for its winding up.
The petition was presented by GSC creditor Keen Ltd, a major highlift rental and electrical services company.
GSC earlier this month laid off 22 employees at the KEMH site.