A Glasgow-based electrical fit-out firm has ceased trading and made all 40 employees redundant.
Alistair McAlinden and Geoff Jacobs, of Interpath, have been appointed joint administrators to BGL Contracts Limited.
The subcontractor specialised in electrical fit-outs to clients across a number of sectors – including leisure and hospitality, automotive, and retail. Interpath explained that, in recent months, it struggled to overcome financial challenges amidst rising costs, low contract margins, and the ‘rephasing of some major contracts’.
Despite extensive efforts from the directors to secure fresh investment, the business could not meet its financial obligations as they fell due, which led to the appointment of the joint administrators, Interpath added.
Following the appointment, the business ceased to trade and all 40 employees were made redundant.
Alistair McAlinden, joint administrator and Interpath MD, said, “The dynamics in electrical subcontracting are testing contractors to the limit. Businesses like BGL are being squeezed by rising costs and unforgiving contracts which have left them highly vulnerable to insolvency. Unfortunately for BGL, these challenges proved insurmountable and without significant investment, the business was unfortunately unable to continue. Our immediate priority is to support impacted employees in submitting their claims to the Redundancy Payments Service.”
Any parties with an interest in the business or assets of BGL are advised to contact the joint administrators.
