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Administrators appointed

Building firm failure blamed on construction site ban

The firm has been building luxury shoreline homes

Government restrictions on construction sites have been blamed for the collapse of a building firm in western Scotland.

Derek Forsyth and Blair Milne, partners with Campbell Dallas, have been appointed joint administrators of the largest construction business in Oban, Neil McGougan Ltd. 

Founded in 1986, the family-owned business provided a wide range of building and construction related services to a substantial client base across Argyll and Bute and the West Highlands.  

The administration was caused by severe cash flow problems stemming from the implementation of Coronavirus restrictions including the cessation of construction activity on non-essential sites. 

The business has ceased trading with immediate effect and 20 staff have been made redundant.

The joint administrators will now seek buyers for the assets, which includes plant, equipment and vehicles and are asking interested parties to make contact as soon as possible.   

The company has been closely involved in community activities. It sponsored events such as the Oban Sportive, The Craggy Island Triathlon, the Oban Ladies Squash Team and Big Bill’s Big Cycle.

Derek Forsyth, Head of Business Recovery and Insolvency with Campbell Dallas said: “Neil McGougan Limited was a long-established and highly respected local construction firm. 

“The directors did everything possible to keep the business trading, however the scale of cash flow problems and the impact of the lockdown left them with no alternative other than to place the business in administration.”

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