CARLUKE-based Iain Potter Construction (IPC) Ltd has ceased trading following a ‘severely constrained’ cash flow position.
The firm’s 33 staff members have since been made redundant, with Blair Nimmo and Alistair McAlinden of Interpath Advisory being appointed as joint provisional liquidators.
Interpath Advisory cited rising labour and raw material costs, coupled with increasing overheads and ‘certain contractual difficulties’ as the reasons behind Iain Potter Construction’s position.
It added that, despite ‘certain actions’ being taken by the director to improve the firm’s financial position, sufficient new funds could not be secured nor costs be sufficiently reduced.
Blair Nimmo, chief executive of Interpath Advisory, said, “The collapse of IPC is another worrying sign of the challenges presently facing the Scottish construction sector and, particularly, subcontractors. IPC was a well-known contractor and its insolvency will, unfortunately, not be the last we will see in the early months of 2022.”
Alistair McAlinden, MD of Interpath Advisory Scotland, added, “Our immediate priority will be to assist employees with their claims to the Redundancy Payments Office, as well as safeguarding the company’s assets and liaising with IPCs customers.”