BDO administrators called in as East Kilbride kitchen appliance firm closes
James Stephen and Ben Peterson of BDO have been appointed as joint administrators to Merchant City Distributors Limited, an East Kilbride-based kitchen appliance company that has ceased trading after 25 years in business.
The collapse has resulted in the loss of all 18 jobs.
The pair were brought in after the directors of Merchant City Distributors concluded there was no viable future for the business, citing detrimental supply chain issues and a challenging trading environment. The Kelvin Industrial Estate-based firm, which supplied and installed gas and electrical kitchen appliances across Scotland, had already stopped trading prior to the administrators’ appointment.
Confirming the redundancies, the joint administrators said: “Following detrimental supply chain issues, the directors concluded there was no viable future for the business and ceased to trade. Consequently, they took the difficult decision to appoint the joint administrators, with 18 employees subsequently being made redundant.”
Mr Stephen indicated that broader economic pressures had been a significant contributing factor in the firm’s downfall, and outlined BDO’s immediate priorities in the wake of the appointment.
“The challenging business environment impacted the company’s ability to trade and the directors unfortunately saw administration as the only option,” he said. “Our focus now is on processing employee claims and realising the company assets for the benefit of creditors.”

