Dovetail Enterprises, which provided employment for disadvantaged and disabled people in Dundee for more than 150 years, has collapsed into administration.
The charity, which traces its roots back to 1865, was placed in administration after failing to secure cash funding late last week.
Dovetail is the manufacturer of safety doors, mattresses and bed bases. Of the 51 employees, more than 30 are regarded as living with a disability or a disadvantage.
Cashflow issues caused by rising costs and trading difficulties were blamed for the company’s demise.
Employees are being supported by the administrators Interpath.
A plan is in place to help sell the business and assets, while the Scottish Government and Dundee City Council have offered assistance through the partnership action for continuous employment (PACE).
It has been confirmed 47 jobs have been lost, with a small number retained to help with the administration process.
The Courier understands staff were informed of the redundancies on Monday.
Dovetail placed into administration
After being unable to find financial support, the board said it had no option but to go into administration.
Geoff Jacobs, managing director at Interpath and joint administrator, said: “Supporting employees through this incredibly difficult period is an absolute priority for us.
“Our specialist team on site is co-ordinating a package of measures alongside multiple agencies, including the Scottish Government through PACE and Dundee City Council, to provide as much assistance as possible to staff.
“The package incorporates a range of initiatives comprising DWP Work Coach support, Disability Employment Advisers, Access to Work claims support, and assistance with applications to the Redundancy Payment Service, which together will help guide staff through the process and towards new employment.
“Dovetail has been a prominent enterprise in Dundee for generations and has made a tremendous impact on the lives of many people in the local community.
“Unfortunately, despite the Dovetail brand being well known for quality products, the financial position of the business was not sustainable and it is disappointing that despite the significant efforts of the board, trading could not continue.
“We are now rapidly exploring options to sell the business and assets, which include, among other things, a well-positioned property, strong brand name and order book, and encourage any interested parties to come forward very quickly.”
150 year history
Dovetail’s history goes back to 1865 when the first steps were taken to set up an enterprise to provide work, support and education for men and women with visual impairment.
This resulted in what was to become Royal Dundee Blindcraft Products, latterly known as Blindcraft.
Meanwhile, in the 1920s, a Lord Roberts Workshop was established in Dundee to provide employment for disabled ex-servicemen.
In the early days of Lord Roberts, toys were a major part of the business – later developing into an expertise for crafted furniture.
These organisations worked independently for many years until 1993. The local authority recognised both charities needed new buildings, so Dovetail Enterprises came about.
The operation owns a 100,000sqft manufacturing facility on Dunsinane Avenue, purpose-built for those with disabilities.
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