Contract disputes help send 38-year-old firm under
Dundee-based building services firm McGill & Co has collapsed with the loss of 374 jobs.
Blair Nimmo and Geoff Jacobs of KPMG have been appointed joint administrators to the firm.
They blamed challenging trading conditions and “disputes and delays in payment for a number of significant projects”.
McGill made a pre-tax profit of £772,000 from a turnover of £41.8m, its latest results filed at Companies House for the year to 30 September 2017 show.
The administrators have kept on 55 of the firm’s 429 employees to help sell the company’s assets.
Nimmo, who is KPMG’s global head of restructuring, said: “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 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.”
The company said reduced margins, combined with contract and payment delays and a downturn in billable work during the winter months, had left it with a significant funding shortfall.
McGill was established in 1981 and trades through five divisions – M&E, FM, social housing, private residential and fibre and wireless.