CENTRAL Building Contractors (Glasgow) Limited has entered administration, following ‘challenging trading conditions’ in the construction industry and reduced margins, contract disputes and delays in major projects.
Established in 1971, Central Building Contractors is a privately owned, family run Scottish company. Headquartered in Glasgow, it employs 159 people. Administrators, KPMG, said that despite the directors taking various actions to address the firm’s position, the company was left with a significant funding shortfall.
As with most insolvencies within the construction industry, it is not possible for the company to trade in administration – even should the current lock-down measures be lifted. As such, the administrators have made the decision to 148 employees redundant immediately, with 11 members of staff being retained to assist with the administration process.
Blair Nimmo, joint Administrator and KPMG’s UK head of restructuring, said,“Central Building Contractors (Glasgow) Limited has a rich history and is a well-known and highly regarded business in Scotland, but, despite the efforts of the directors, the business faced a range of cashflow challenges in recent times, which were amplified by the recent Covid-19 lockdown”.
“We will be working to support the employees and have already initiated matters with relevant government agencies to ensure the full range of support is available to all those affected.”
“We would encourage any party who has an interest in acquiring any part of the business and assets to contact us as soon as possible.”
James McAlpine, director at Central Building Contractors (Glasgow) Limited, commented, “Already difficult trading conditions have been greatly exacerbated by Covid-19 which has made our financial position unsustainable. It is with significant regret that administration has been necessary. We have been very fortunate to have loyal and hard-working staff, a supportive supply chain and professional partners, many of whom have worked closely with the business for a great many years. We will work closely with the Administrators to ensure every possible assistance is provided to all our employees during this exceptionally difficult time.”