EY appointed administrators at Dundee engineering firm

The ductwork contractor and fabricator has worked on iconic buildings such as the British Museum in London, Glasgow’s Sir Chris Hoy Velodrome and the Scottish Parliament in Edinburgh.

It has not been confirmed how many jobs are under threat, although it is understood that some 160 of the firm’s 200-strong workforce have been made redundant, with the remainder kept on to assist EY.

A statement from the firm said: “The business has been under considerable pressure for a number of years.

“Demand in our traditional construction market has been very weak since 2012 and margins have been significantly reduced.

“In the recent past, the collapse of the oil and gas sector has applied further pressure. This has meant that the business has been loss making and under cash pressure.

“The directors have worked tirelessly, and in good faith, to avoid insolvency through a number of initiatives, including cost cutting, modernising the business offering and raising finance.

“Efforts to raise finance are significantly impaired because of the high debt burden on the business from both previous borrowings and the final salary pension scheme.”

The statement added: “This is a very sad day for a long-established Dundee company and our thoughts and best wishes are with the employees and creditors of the business.

“We will continue to work with EY during the administration process as may be required.”

Galloway, which first started trading as tinsmiths in Dundee in 1872, specialises in areas such as ductwork fabrication and acoustic enclosures.

As well as Dundee, it has offices in Dewsbury, West Yorkshire.