Dundee building contractor collapses into administration
Blair Nimmo, partner, and Geoff Jacobs, director, of KPMG have been appointed as joint administrators of Dundee-based specialist building contractor McGill & Co Ltd, which has collapsed with the loss of over 300 jobs
7 Feb 2019
The company, which was set up in 1981, provides services to clients in the residential, commercial and industrial sectors from its headquarters in Dundee and ancillary offices in Glasgow and Edinburgh. It trades through five divisions; mechanical & electrical services, facilities management; social housing; private residential; fibre and wireless.
The administrators said that in recent years, McGill & Co has suffered from challenging trading conditions in the construction sector and has encountered disputes and delays in payment for a number of significant projects. Reduced margins, combined with contract and payment delays and a downturn in billable work during the winter months, left the company with a significant funding shortfall.
Following an assessment of the immediate funding requirement, the directors developed a business turnaround plan and approached a number of parties to attempt to secure additional funding. Ultimately, as McGill & Co was unable to secure the funding it required, its only option was to be placed into administration to protect the creditors’ position as best as possible.
Upon appointment, the joint administrators said they had no other option than to make 374 of the company’s 429 employees redundant with immediate effect.
The 55 remaining employees have been retained to assist the joint administrators to realise the company’s assets, including four freehold properties, numerous contracts, an extensive order book and construction equipment. The joint administrators are exploring whether an early sale of some of the business and assets can be secured.
Blair Nimmo, global head of restructuring for KPMG and joint administrator, said: ‘McGill & Co Ltd is a well-known, long established business and provides a significant source of employment, particularly in Dundee both directly and through the supply chain.
‘Disappointingly, market conditions and contract related disputes have required the business to cease trading. We will do everything we can to seek a buyer who may be able to protect some of the business and maximise recoveries for creditors.’
Report by Pat Sweet