The specialist contractor is to continue work at Brookfield Mulitplex’s 100 Bishopsgate and One Blackfriars sites
Byrne Group is to take over Dunne Group’s jobs at 100 Bishopsgate and One Blackfriars after Dunne entered administration earlier this week.
A source close to the situation confirmed fellow concrete specialist Byrne Group would now take on the two high profile jobs.
Dunne Group had been working on these tower projects for main contractor Brookfield Multiplex.
Dunne Group had also been working on Mace’s £100m private-rental project Highpoint in Elephant & Castle where contingenicy plans are being worked through, Building understands.
Dunne Group entered administration this week with the loss of 524 jobs after substantial trading losses on some contracts, which led to severe cash flow pressures, its administrator FRP Advisory has said.
Meanwhile, bank Santander, a lender to the firm, claimed Dunne Group “had been making substantial losses” despite the bank providing “increased facilities on numerous occasions”. FRP declined to comment on Santander’s claim.
Workers at the firm had been sent home from sites across the UK on Tuesday, prompting union Ucatt to raise concerns about the firm’s financial situation.
A Ucatt spokesperson said earlier “we’ve had people sent home” and claimed the multiple site shutdown came “without warning” as far as they knew.
Dunne Group’s latest accounts published on Companies House show a turnover of £54.8m for the year to October 2014, up almost half on the previous year’s turnover of £37.1m. The Scottish-based company made a pre-tax profit of £756,073 for 2014, after a loss of £475,878 the previous year. The firm at the time recorded 314 employees at its year-end.
A document filed at Companies House reports Dunne Group’s finance director Andrew Love resigned as a director of the company on 24 June. He had been finance director for less than a year.
Byrne Group and Mace declined to comment. Brookfield Multiplex has been contacted for comment.
Dunne Group is the second concrete specialist to enter administration in little over a year after PC Harrington Contractors sprialled into bankruptcy last May.