Scotbet jobs and shops axed in pre-pack deal with receiver
11 shops will close
Betting office chain Scotbet has fallen victim to the malaise spreading through the bookmaking industry and has been put into receivership.
The business has been acquired by newly-formed Scotb 123 in a pre-pack deal, safeguarding 127 jobs.
The deal will see 11 of the company’s 41 betting offices close, resulting in 27 redundancies.
Paul Dounis and Gareth Harris of RSM Restructuring Advisory were appointed joint receivers today 19 July. They said the company had been hit by increased competition, a shift towards online betting and changes to the maximum Fixed Odd Betting Terminal stakes.
A number of bookmakers have warned of closures and cutbacks following the introduction of a £2 maximum stake on FOBTs which have been blamed for adding to gambling addiction issues.
Mr Dounis said: “The business faced a number of changes to the trading landscape, like other businesses in the sector, and was unable to continue to trade.
“We are working closely with Redundancy Payments Service to support those employees who have been made redundant to process claims as quickly as possible.’
John Heaton, chairman at Scotb123, said: “I am pleased that we have managed to save 30 of the Scotbet shops. This has been a very difficult time and I am particularly sorry for the staff in the branches which have closed.
“Independent bookmakers have been hit hard by increased costs and the reduction of the FOBT stake was the straw which broke the camel’s back.”
Shop and hotel fitter saved in sale
A company specialising in shop and hotel fittings has been placed in administration and sold in a deal which protects jobs and secures contracts.
Curot Contracts, trading as Dimension Shopfitting has been acquired by Barrochan and has now become part of the City Gate Construction group.
Blair Nimmo and Alistair McAlinden of KPMG were appointed joint administrators of Curot Contracts and immediately concluded the sale.
Established in 1984, Dimension generated peak annual turnover in the region of £20 million, but challenging conditions in the retail, dining and wider hospitality and leisure sectors, reduced the amount of work available to the business, from its traditional customer base.
Cashflow pressures led the director to place the company into administration. Despite this, the future order-book remains strong and its brand continues to be highly regarded.
Barrochan will become part of the CGC group, a privately-owned construction, refurbishment and maintenance main contractor.