Dundee social enterprise Dovetail was given around £1 million in government support before it plunged into administration.
Bosses at the stricken manufacturer, which has a workforce the majority of whom live with disability, had pleaded with ministers as far back as 2019 detailing their financial difficulties.
The firm, which traces its roots in the city back to 1865, has plunged into administration, with 47 employees told “without warning” on Monday they no longer had jobs.
Rising costs, an ageing factory building and a failure to secure additional funding, despite “exhaustive efforts” by Dovetail management, contributed to its closure.
And now GMB Union is calling for urgent meetings with politicians, the administrators and enterprise agencies to help secure a buyer.
Dovetail administration
Dundee City Council was involved on the board of Dovetail, with councillors elected as representatives.
Until October of last year, council administration leader Mark Flynn was listed as a director, through his position on the council.
He said “significant council support” had been provided over the years, and that his thoughts are with those affected by this week’s job cuts announcement.
“I am saddened to hear that Dovetail Enterprises has gone into administration and ceased trading,” he said.
“We as a council have provided significant financial support to Dovetail through both annual and additional funding and I know other partners have assisted wherever possible.
“My thoughts today are with the employees affected.
“The Partnership Action for Continuing Employment (Pace) team has been alerted and stands ready to offer its full support to the workforce.”
Scottish Government intervention
Dundee-based Labour MSP Michael Marra wrote to the Scottish Government’s minister for employment and investment, asking what steps had been taken to support Dovetail before it went under.
Minister Tom Arthur responded: “The Scottish Government, its agencies and partners have been working with the company since 2019, when Dovetail first wrote to Ministers to request support to keep trading.
“The sum of public sector support provided by the Scottish Government, Scottish Enterprise and others, now totals just under £1 million.
“Over recent months, I have been working closely with the company to help it explore every available option that could potentially secure a future for the business and avoid the need for redundancies.
“Unfortunately, Dovetail’s financial position became too severe and a positive
solution could not be found to sustain the business.”
He added the government would assist employees made redundant would be offered “a tailored package of support” including DWP work coaches and disability employment advisors.
Mr Marra said: “Dovetail has been providing work and wages for Dundonians with disability or disadvantage for generations.
“It is desperately sad to see it come to this and I know that the staff will be distraught.
“I have known employees of Dovetail my whole life.
“They loved working there. Supported employers of this kind are communities of work where people can find both purpose and friendship.
“The model is part of the solution to getting more disabled people the opportunities that they want.
“I hope that a business with such a strong brand can find a buyer and continue this great work.”
Union calls for buyer to step forward
Vicki Leonard, GMB Scotland organiser, said the business being forced into administration was a huge blow for workers.
She said: “The skilled and committed workers deserve every support to ensure this important social enterprise company can continue under new ownership.
“We have heard a great deal from politicians recently about the need to help people with disabilities into work but words are cheap.
“The skilled jobs supported by this company will not be easily replicated and everything must be done to ensure a new owner is found and supported.”
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