Firm in administration
148 jobs lost as tough trading sees CBC collapse
Challenging conditions faced the company
Glasgow firm Central Building Contractors has fallen into administration with the loss of 148 jobs.
Established in 1971, the company is a family-run business providing a range of construction design, development and maintenance services throughout Scotland.
In recent years it has suffered from challenging trading conditions in the construction sector and has encountered reduced margins, contract disputes and delays in starting a number of significant projects.
Despite the directors taking various actions to address the position, these factors left the company with a significant funding shortfall. At the time of appointment, in accordance with the Government’s guidelines all the projects had been closed for five weeks.
Joint Administrators at KPMG announced the redundancies would be effective immediately with 11 members of staff being retained to assist with the administration process.
A buyer is being sought for some of the business and assets which include three freehold properties, numerous contracts, order book, work in progress and construction equipment.
Blair Nimmo, joint administrator and KPMG’s UK head of restructuring, said: “Central Building Contractors (Glasgow) Limited has a rich history and is a well-known and highly regarded business in Scotland, but, despite the efforts of the directors, the business faced a range of cashflow challenges in recent times, which were amplified by the recent Covid-19 lockdown.
“We will be working to support the employees and have already initiated matters with relevant government agencies to ensure the full range of support is available to all those affected.”
James McAlpine, director at Central Building Contractors, commented: “Already difficult trading conditions have been greatly exacerbated by Covid-19 which has made our financial position unsustainable.
“It is with significant regret that administration has been necessary. We have been very fortunate to have loyal and hard-working staff, a supportive supply chain and professional partners, many of whom have worked closely with the business for a great many years.
“We will work closely with the Administrators to ensure every possible assistance is provided to all our employees during this exceptionally difficult time.”