KPMG appointed administrators of Dundee-based building contractor
Blair Nimmo and Geoff Jacobs of KPMG LLP have been appointed as joint administrators of Dundee-based building contractor McGill & Co Limited.
McGill & Co, established in 1981, provides services to clients in the residential, commercial and industrial sectors from its headquarters in Dundee and ancillary offices in Glasgow and Edinburgh.
In recent years, the company has suffered from challenging trading conditions in the construction sector and has encountered disputes and delays in payment for a number of significant projects. Reduced margins, combined with contract and payment delays and a downturn in billable work during the winter months, left the company with a significant funding shortfall.
Following an assessment of the immediate funding requirement, the directors developed a business turnaround plan and approached a number of parties to attempt to secure additional funding. Ultimately, as McGill & Co was unable to secure the funding it required, its only option was to be placed into administration to protect the creditors’ position as best as possible.
Upon appointment, the joint administrators made 374 of the company’s 429 employees redundant with immediate effect.
The 55 remaining employees have been retained to assist the joint administrators to realise the company’s assets, including four freehold properties, numerous contracts, an extensive order book and construction equipment. Mr Nimmo and Mr Jacobs are exploring whether an early sale of some of the business and assets can be secured.
Mr Nimmo, global head of restructuring for KPMG and joint administrator, 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 will do everything we can to seek a buyer who may be able to protect some of the business and maximise recoveries for creditors.”