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Blow for construction sector

Dunne Group collapses with 524 jobs lost as cash runs out

Glasgow Transport MuseumCivil engineer Dunne Group and five of its subsidiaries has ceased trading, putting 524 of the 540 employees out of work.

Tom MacLennan, Iain Fraser and Geoff Rowley, partners at FRP Advisory, the business advisory firm, have been appointed as joint administrators to the West Lothian company. 

London will bear the brunt of the job losses, with 311 to go, while 200 are in Scotland and 13 in Leeds.

The five subsidiaries are: Dunne Building and Civil Engineering; Dunne Developments; CLR Plant Hire; Dunne Concrete Flooring and Conforce.

Founded in 2001 and headquartered in Bathgate, The Dunne Group also operated from sites in Glasgow, Leeds, Dublin and London, providing an extensive range of civil engineering, building, construction, infrastructure, contracting and plant hire services. 

Queen Elizabeth HospitalThe business had grown rapidly in recent years with major contract wins including three high profile projects in London – Newington Butts, 100 Bishopsgate and One Blackfriars. Turnover last year was £74 million and forecast this year at £96m.  It also worked on the Glasgow Transport Museum (pictured) and the Queen Elizabeth University Hospital in the city (pictured).

Mr MacLennan said: “This is a sad loss for the construction and building industry.  The business faced substantial trading losses on some contracts, leading to severe cash flow pressures.

“Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.  

“Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant. A team of 16 staff will be retained to assist with the closure process and realisation of the business’ assets.  Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”

The Dunne Group owns a substantial portfolio of specialist equipment and assets including cranes, trucks, lifting equipment, excavators and access platforms.  These items will be valued and marketed for sale in due course.


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