Scottish Coal has gone into liquidation, with the loss of 590 jobs, the vast majority of which are in Clydesdale. All operations have stopped and Blair Nimmo and Tony Friar, of KPMG, were appointed Joint Provisional Liquidators on Friday.
Some 590 employees were made redundant and all operations ceased immediately following the insolvency appointment. 142 staff remain to help the liquidators secure the sites and help sell any assets. Scottish Coal operates six open cast coal mines in East Ayrshire, South Lanarkshire and Fife. The business employed a total of 732 people.
Blair Nimmo, Joint Provisional Liquidator and Head of Restructuring at KPMG in Scotland said: “In light of Scottish Coal’s poor trading and financial position, we have had to cease trading with immediate effect.
“It is extremely regrettable that we have had to make so many redundancies but have been left with no other option.
The problems at Scottish Coal were well publicised as 450 staff were placed on notice of redundancy back in March as the directors tried to restructure the business. Falling coal prices, and increased operational costs (mainly fuel) have put a strain on cashflow. Finally the prospect of dwindling reserves was the final straw.
Any parties with an interest in acquiring the business and assets should contact Blair Nimmo in KPMG’s Edinburgh office on 0131 222 2000 or in writing at Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2EG.