Dundee-based Muirfield Contracts Ltd has entered administration, resulting in 258 staff being made redundant and 110 sub-contractors left out of work. The company’s demise has been as a result of poor cash flow over the last few months.
Joint administrators, Derek Forsyth and David Hunter of Campbell Dallas, have now taken control of the company and will look into all possible solutions for the business going forward, including a potential sale.
Founded in 1988, Muirfield’s provides construction and building work to a range of businesses and individuals throughout the UK with a turnover of £47 million.
Derek Forsyth commented, “It is likely that a significant number of employees will be made redundant in the early stages of the administration and they will be advised as soon as possible”.
“We recognise that this is a very difficult time for all concerned and will do our utmost to provide as much support as we can.”
All employees have been sent home while the administrators review the situation and look for suitable buyers - they are currently asking all interested parties to come forward.
This afternoon, Forsythe said in a statement, "We have written to all employees affected by redundancy and letters to the labour-only sub-contractors are currently being issued. We are retaining a core staff of 25 to assist with the on-going assessment of the contracts position and to help with the wind-down of the company’s affairs. We are fully aware of the impact of the redundancies on the local economy and communities".
"My team and I will be working with all relevant agencies, the trade union, local politicians and third parties to provide as much support as possible to all employees. Unfortunately, the business had effectively ceased trading prior to our appointment and its position was untenable and unsustainable.We will now focus on the wind-down process and will look to realise as much value as possible from the contracts and sales of any physical assets such as property, plant and vehicles."
If you are an employee of the business, please listen to the video below as it will tell you your rights as an employee of an insolvent company. There is a link at the end of the video to the Government website which expands further on what you need to know.