Bathgate-headquartered civil engineering and construction firm The Dunne Group has gone into administration, resulting in the loss of over 500 jobs – 200 of which are in Scotland.
524 of the company’s 540 jobs have been immediately lost with 16 being retained to assist with the closure.
The Dunne Group, founded in 2001, operated across the United Kingdom and has had major contract wins in recent years, including Newington Butts, 100 Bishopsgate and One Blackfriars, all in London. The firm turned over £74 million last year and was forecast to turn over £96 million in 2016.
Tom MacLennan, Iain Fraser and Geoff Rowley, partners at business advisory firm FRP Advisory have been appointed as joint administrators.
Tom MacLennan said, “This is a sad loss for the construction and building industry. The business faced substantial trading losses on some contracts, leading to severe cash flow pressures. Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.
“Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant. A team of 16 staff will be retained to assist with the closure process and realisation of the business’ assets. Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”