Administrators called in
Building contractor McGill collapses with 374 job losses
Blair Nimmo and Geoff Jacobs of KPMG were appointed as joint administrators of the 38-year-old Dundee company today.
McGill & Co provides services to clients in the residential, commercial and industrial sectors from its headquarters in the city and ancillary offices in Glasgow and Edinburgh.
The company trades through five divisions; mechanical & electrical services, facilities management; social housing; private residential; fibre & wireless.
In recent years, McGill & Co has suffered from challenging trading conditions in the construction sector and has encountered disputes and delays in payment for a number of significant projects.
Reduced margins, combined with contract and payment delays and a downturn in billable work during the winter months, left the company with a significant funding shortfall.
The directors were unable to secure funding for a turnaround plan leaving administration as the only option to protect the creditors’ positions as best as possible.
The administrators immediately made 374 of the company’s 429 employees redundant. The 55 remaining employees have been retained to assist with selling the company’s assets, including four freehold properties, numerous contracts, an extensive order book and construction equipment Joint Administrators are rapidly exploring whether an early sale of some of the business and assets can be secured.
Mr Nimmo, global head of restructuring for KPMG, said: “McGill & Co Limited is a well-known, long established business and provides a significant source of employment, particularly in Dundee both directly and through the supply chain.
“Disappointingly, market conditions and contract related disputes have required the business to cease trading. We will do everything we can to seek a buyer who may be able to protect some of the business and maximise recoveries for creditors.
“We would encourage any party who has an interest in acquiring any part of the business and its assets to contact us as soon as possible.
“We will be working with employees and have already initiated matters with relevant government agencies to ensure the full range of support is available to all those affected.”
Scottish Business Minister Jamie Hepburn said: “I was very disappointed to learn about the situation at McGill & Co in Dundee and at its operations in Glasgow and Edinburgh.
“Scottish Enterprise engaged closely with the company in recent months and has worked with it to try and find a solution to its difficulties.
“I had spoken with McGill’s Managing Director and offered the full support of the Scottish Government and Scottish Enterprise. Unfortunately, McGill’s trading situation changed rapidly which meant a positive outcome solution for the company was not possible.
“I am seeking a call with the administrators, KPMG, at the earliest opportunity.
“Our Partnership Action for Continuing Employment (PACE) team has been alerted and stands ready to offer its full support to the workforce.
“A PACE event will be held in Dundee for affected staff on Thursday 7 February.”
Our Power update
Mr Nimmo and Alistair McAlinden of KPMG were appointed joint administrators of Edinburgh-based Our Power Energy Supply Limited which supplied gas and electricity to around 31,000 customers across the UK and was part of a group of companies owned by Our Power Community Benefit Society, a not-for-profit co-operative.
Ofgem earlier this week transferred customer accounts to Utilita Energy. The administrators say 68 employees are being retained in the short term to support the smooth transfer of customers.
Mr Nimmo said: “The challenges facing the energy sector have been well-publicised in recent months, and Our Power has experienced similar difficulties to other suppliers. Unfortunately, this left the directors of the company with no option but to ask Ofgem to run a Supplier of Last Resort Process which has successfully found a home for its customers with Utilita.
“Our main role, as administrators to Our Power Energy Supply Limited, is to work with those customers who owed money to the company to collect the outstanding balances. These customers will be contacted shortly.”