Cost pressures

McGill confirms administration, one division sold

McGill Dundee
McGill collapsed under financial pressures

Dundee contractor McGill has confirmed expectations that it would fall into administration for the second time in less than four years.

The firm – trading as McGill Facilities Management – is now under the control of administrator Leonard Curtis.

The refurbishment and fit out specialist first went into administration in February 2019 with the loss of 374 jobs. It was subsequently acquired by United Capital, led by property developer Graeme Carling, and embarked on an expansion and acquisition programme.

But earlier this month it submitted to the Court of Session a notice of intent to appoint administrators and interim liquidators at William Duncan (Business Recovery) were appointed with expectations that most of the remaining 120 jobs would be axed.

Leonard Curtis said the company crashed again due to “financial pressure due to a combination of factors caused by the Covid-19 pandemic, a number of loss-making contracts and material price inflation.”

Administrator Barry Stewart said: “The company had been struggling with regards to cashflow in particular for a period of time and despite accessing Government assistance via the Coronavirus Business Interruption Loan Scheme, insolvency was unavoidable and the business was marketed for sale.”

A pre-pack deal has been achieved for the fire and security division of the company which has been sold to Galashiels-based SPG Fire & Security.

Mr Stewart added: “We are pleased to say this process resulted in the going concern sale of the fire and security division which will assist in maximising realisations for creditors whilst protecting a number of jobs.”

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