Second Dundee firm to collapse
160 jobs lost as engineer falls to weak sales
All but 33 of the workforce have been made redundant at the DuctMate subsidiary, which has struggled against “very weak” sales for at least four years.
The directors called in administrators at EY, saying the downturn in the oil and gas sector had pushed the company into a loss.
It is the second Dundee based manufacturer to call in administrators in the past few days. Offshore container maker PressureFab, its parent company Twickler Industries and four group companies collapsed at the weekend, putting 42 employees out of work.
In a statement Galloway Group’s directors said they had “worked tirelessly, and in good faith, to avoid insolvency through a number of initiatives, including cost cutting, modernising the business offering and raising finance.
“Efforts to raise finance are significantly impaired because of the high debt burden on the business from both previous borrowings and the final salary pension scheme.
“The board would wish to acknowledge the support of many parties, both in the private and public sector, all of whom have Galloway and its’ employees interests at heart.
“We would especially wish to acknowledge the commitment, skill and hard work of the employees, many of whom have been with the business for a long time.
“This is a very sad day for a long-established Dundee company and our thoughts and best wishes are with the employees and creditors of the business.
“We will continue to work with EY during the Administration process as may be required.”
> Nolan Seafoods (UK) in Aberdeen confirms that, due to volatile and unpredictable salmon and white fish market conditions and the loss of a major customer contract at short notice, it has had to inform staff of a planned restructuring of the company’s operations and the potential for redundancies.
The company is exploring a number of options to minimise the impact on the workforce and to ensure the short and long term viability of the business. It has entered a period of consultation with staff and hopes to limit the number of redundancies to fewer than 40 of its 217 staff.
George Nolan, chairman, said: “We are communicating fully with our staff and working with all representatives to ensure that employees receive as much information and support as possible during this difficult period.
“The company remains committed to providing quality service levels to our existing customers while exploring opportunities to develop new business.”