Thirty people have lost their jobs following the collapse of Dundee plumbing firm, George Penman Plumbing, with debts in excess of £300,000.
George Penman Plumbing and Heating Ltd, based in Smith Street, worked on contracts all over Scotland, but has suffered heavy losses over the last 18 months, which are blamed on the current state of the building industry.
Director George Penman said the company had been “pulled down” by the collapse of other firms that sub-contracted work to the Dundee outfit and did not pay them.
Yesterday Mr Penman had the task of informing his “loyal” workforce of 26 plumbers and four office staff that their jobs were finished.
“The final nail in the coffin for us was the new houses getting built on Bellfield Street (in Dundee),” he said. “The building firm went into administration two weeks ago when they were due us £57,000.
“Since last March I think we have lost roughly £250,000 from people going down into liquidation. I have put £100,000 of my own money into the firm since October to try and keep us afloat and keep people employed in Dundee.”
He said in previous years his company was very successful and had a full order book, but the whole building industry was struggling now and it had been impossible to keep absorbing the heavy losses.
Mr Penman said his firm had been one of the busiest plumbers in the Tayside and Aberdeen areas but had been hit hard by the recession in the building industry.
Last summer the Dundee firm won the plumbing contract for the refit of one of the biggest stores in the UK.
“Just a week after we finished that job in Glasgow, the company went into liquidation,” said Mr Penman. “We lost over £100,000. When a Forfar builder went down the tubes two weeks ago with bad debts, it finally pulled us down with it.
“The banks aren’t helping the construction industry. The whole industry is in tatters.”
He said it was “very unfortunate” he had to let his workers go.
“It is very upsetting,” said Mr Penman, who established the business 10 years ago.
One of the plumbers losing his job was Mr Penman’s father Angus.
“He works for me as well,” said Mr Penman. “He has been a plumber for 30-plus years. Even he said he had never seen the building industry in such a terrible state.
“The last 18 months have been hellish trying to keep going, but with so many building companies going down the tubes there is only so much I can withstand.”
Yesterday Dundee Sheriff Court appointed a provisional liquidator, chartered accountant Graeme Cameron Smith, authorising him to exercise powers under the Insolvency Act.
Court papers included the information that a “statement of affairs disclosed a deficiency of liabilities over assets of £322,855.”
Further information from the court papers stated that at a meeting on May 19, the director and sole shareholder of the company (Gordon Penman) concluded the company was “insolvent and should be wound up.”