The McManus Cos., a Northborough excavating contractor that has been in business for 27 years, closed this week, according to a Needham bankruptcy lawyer that has been hired by the company.
Donald Lassman of Needham said he will handle the liquidation of the company’s assets and payments to creditors.
“It’s really a sad situation because it’s been a family-owned business,” Lassman said.
A worker at McManus’s Northborough facility confirmed that the business is closing this week, but did not give his name. He said about 50 employees had been employed.
Lassman said an inventory will be done to determine the assets of the company. McManus will be handling the sale of its headquarters, located at 361 West Main St. in Northborough.
According to the Northborough tax collector’s office, the company has not paid its third quarter taxes of $3,192.57, which includes $62.43 in interest. That bill was due Feb. 26.
The four companies McManus Cos. owns include McManus & Sons Inc., McManus Excavating Co. Inc., McManus Equipment Corp. and McManus Equipment Business Trust.
Lassman said he does not expect the company to file for Chapter 11 bankruptcy.
Paul Carey, a partner at Mirick O’Connell law firm in Worcester, said it’s not uncommon for a company going out of business to assign assets to process the liquidation and pay money out to creditors.
A Chapter 11 or Chapter 7 proceeding, the most usual alternative, can be a longer more cumbersome process, he said.
Creditors who are owed money by McManus can request copies of the accounting related to the liquidation or creditors could petition the company to file for an involuntary bankruptcy claim, he said.
Construction is one sector that’s been hit hardest by the recession in the last two years.
National employment data released last month reported that nationwide an average of 72,000 jobs were lost each month in the construction industry for the past year.
Earlier this month the state’s Executive Office of Labor and Workforce Development reported that the construction sector lost 900 jobs in March. Construction jobs declined by 16,000 compared to the same time a year earlier.
