Central Building Contractors, the Glasgow-based construction firm has fallen into administration. 148 jobs have been lost with immediate effect.
Over the last few years, it has suffered from the challenging trading conditions apparent in the construction industry and has faced reduced margins, contract disputes and delays in starting many significant projects. Covid-19 greatly exacerbated the matter.
The directors took various actions in attempt at addressing the circumstances, but the company was left with a significant funding shortfall.
Blair Nimmo and Geoffrey Jacobs of KPMG LLP were appointed joint administrators.
At the time of appointment, all projects had been closed for five weeks, as per the government’s guidelines.
Redundancies will take place immediately with just 11 staff being retained to assist with the administration process.
KPMG say how regrettably, it is not possible for the company to trade in administration, even if the lockdown should be removed in early course.
The administrators are rapidly seeking if an early sale of some of the business and its assets can be secured. It’s assets which include three freehold properties, numerous contracts, order book, work in progress and construction equipment.
The company, established in 1971 is a family-run business providing a range of construction design, development and maintenance services throughout Scotland.
Blair Nimmo, joint administrator and the UK Head of restructuring at KPMG said: ‘’Central Building Contractors (Glasgow) Limited has a rich history and is a well-known and highly regarded business in Scotland, but, despite the efforts of the directors, the business faced a range of cashflow challenges in recent times, which were amplified by the recent Covid-19 lockdown.’’
‘’We will be working to support the employees and have already initiated matters with relevant government agencies to ensure the full range of support is available to all those affected.’’
Any interested parties are advised to contact the administrators as soon as possible.
Director at Central Building Contractors, James McAlpine, commented: ‘’It is with significant regret that administration has been necessary. We have been very fortunate to have loyal and hard-working staff, a supportive supply chain and professional partners, many of whom have worked closely with the business for a great many years.’’
The administrators and directors will work closely together to ensure the employees are given assistance during this difficult time.