Dozens of workers at Dundee construction business McGill were made redundant at a lunchtime meeting today.
Employees were called to a meeting at the firm’s Harrison Road headquarters to be told the company was now in administration.
More than 60 staff attended to be told their jobs were lost.
The Courier revealed earlier this month that McGill Facilities Management Limited filed a notice of intent to appoint administrators with the Court of Session.
After today’s meeting, one worker said: “We’ve been expecting to be told we’ve lost our jobs for the past three weeks.
“No work has been getting done and the vans have been returned.
“They have been trying to sell the business. We’ve now been told it’s over and the company is in administration.”
McGill expansion
McGill previously collapsed into administration in January 2019, when around 400 staff lost their jobs.
The McGill name and assets, including the company’s headquarters in Harrison Road, were purchased for around £1 million by a company controlled by Dundee businessman Graeme Carling in March 2019.
The company subsequently made several acquisitions including Alliance Electrical of Forfar, Cupar-based Kingdom Gas Services and Falkirk facilities management company McDougall Group.
All of these businesses fall under the McGill Facilities Management Limited group.
At the start of this month the group employed 120 staff.
With late payment of wages and questions over missing pension payments, some workers left.
A small number of jobs have been saved with the sale of the fire and security division to SPG Fire & Security Ltd of Galashiels.
What led to McGill administration?
McGill is owned by investment group United Capital, controlled by Dundee couple Graeme and Leanne Carling.
Mr Carling described the collapse of McGill as “hugely disappointing”.
He said: “United Capital took a chance knowing it would be difficult and high risk under normal conditions.
McGill owner Graeme Carling breaks silence on Dundee firm’s collapse
“Despite millions of pounds of investment, and fully backing the McGill management board, the unprecedented challenges of the past few years proved too difficult to overcome.”
The United Capital group also includes Glasgow-based Saltire Facilities Management, which is still trading.
Administrators: insolvency ‘unavoidable’
Barry Stewart and George Lafferty of Leonard Curtis of Glasgow have been appointed joint administrators for McGill.
They described insolvency as “unavoidable”.
Mr Stewart said: “The company had been struggling with regards to cashflow in particular for a period of time.
“Despite accessing Government assistance via the Coronavirus Business Interruption Loan Scheme, insolvency was unavoidable and the business was marketed for sale.
“We are pleased this process resulted in the going concern sale of the fire and security division.
“This will assist in maximising realisations for creditors whilst protecting a number of jobs.”
Errol Lawrie, McGill managing director, has been working with the administrators.
He said: “This has been a particularly difficult period for all the employees and customers.
“Whilst it is disappointing that we were unable to save the whole business it does give me some comfort we were able to save this division and a number of local jobs.”
McGill troubles followed contract wins
Since 2019, McGill has announced several multi-million-pound contract wins.
In March this year, Mr Carling said he had achieved a turnover of £20 million and 200 staff.
However, workers have claimed the company has not been paying some of its suppliers for months.
Earlier this month, United Capital blamed its bank for withdrawing its support for its troubles.
Conversation