SCOTTISH specialist building contractor McGill & Co has entered administration with the immediate loss of 374 jobs.
The firm, established in 1981, provides services to clients in residential, commercial and industrial sectors. Headquartered in Dundee, the contractor also has bases in Edinburgh and Glasgow, and trades through five divisions – mechanical & electrical services; facilities management; social housing; private residential; fibre & wireless.
Blair Nimmo and Geoff Jacobs of KPMG have been appointed joint administrators. McGill & Co was said to have suffered from challenging conditions in the construction sector, and encountered disputes and delays in payment for numerous projects. Reduced margins, combined with contract and payment delays and a downturn in billable work during the winter months left the company with “significant funding shortfall”, administrators said.
The directors developed a business turnaround plan and approached a number of parties to attempt to secure additional funding. Ultimately, this was unsuccessful and administrators were called in.
374 of the company’s 429 employees have been made redundant with immediate effect as a result. The remaining 55 employees have been retained to assist administrators to realise the company’s assets, including four freehold properties, numerous contracts, an “extensive” order book and construction equipment.
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 commented, “McGill & Co Limited 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.
“We would encourage any party who has an interest in acquiring any part of the business and its assets to contact us as soon as possible.
“We will be working with employees and have already initiated matters with relevant government agencies to ensure the full range of support is available to all those affected.”