Perth has been dealt a crushing blow with news that building firm Clachan Construction has been placed in receivership with the likely loss of 150 jobs.
SNP colleague and Perth MSP Roseanna Cunningham said, “I am very sad to learn that Clachan Construction has gone into receivership and I hope that the receivers can find a way of rescuing the business and saving as many jobs as possible.
“Pete and I want to make every effort to ensure that all avenues are pursued to salvage the best for employees in these circumstances and intend to meet with management and administrators as soon as we can.”
Meanwhile, Mid Scotland and Fife Tory MSPs Murdo Fraser and Liz Smith have called on the Scottish Government to make PACE (Partnership Action for Continuing Employment) services available to help those who face losing their jobs.
Mr Fraser said, “The news that Clachan Construction Ltd has gone into receivership will be a huge blow to the local economy in Perthshire.
“With people being made unemployed each week, help is needed now for the unemployed and hard-pressed employers across Scotland.
“I, along with my colleague Elizabeth Smith, have contacted SNP ministers to ask for PACE support to be sent in to help respond to redundancy situation.”
Ms Smith said, “At a time when Perth City has got so much to celebrate we must not forget the reality of the difficulties facing the local economy.
“I hope that the Scottish Government will do all it can to offer what help and support it can to assist the company which, amongst so many other things, has done a great deal to support young apprentices as they set out in the world of work.
“We need to do everything possible to support Perthshire jobs and it is vital that partner organisations identify training and employment opportunities for those employees affected.”
The firm, based at the Inveralmond industrial estate, had been struggling along with the rest of the building sector.
Last year, it fought to report a turnover of £18.1 million, with pre-tax profits of £240,000, but the continued downturn in the market has finally brought it to its knees.
The Bank of Scotland has now appointed receivers Claire Middlebrook and Graeme Smith, from Dundee chartered accountants Henderson Loggie, to oversee what could be Clachan’s final days.
Clachan’s workforce had hoped for a last-minute reprieve, but The Courier understands the recession has been too much for the firm to bear and that they have been informed of its closure.
Perth and North Perthshire MP Pete Wishart described the news as a “tragedy” for the town and all those who stand to lose their jobs.
The news comes less than a month after long-standing printing firm Woods of Perth went into administration with the immediate loss of 80% of its workforce.
Just 14 of its 71 staff have been retained to keep the business running while administrator Pricewaterhousecoopers tries to find a buyer.
Clachan has been involved in a number of interesting projects in recent years, including plans to build a £1.1m visitor centre on the banks of the Ericht in Blairgowrie.
However, the building trade has experienced tough trading conditions, with developments on hold across Scotland.
The Perth firm appears to be the latest casualty of this.Staff the priorityClaire Middlebrook said her work was in the very earliest stages, but stressed that the firm’s staff were the first priority.
“We are here in the first instance to assess the company and see what, if anything, can be saved,” she said. “It is likely that we will have to make the workforce redundant.
“I understand that this represents around 150 staff who are currently working on various sites across central Scotland.
“We have already spoken with staff here at the office site in Perth and will now be making efforts to speak directly with as many other workers as possible.”
It is understood that staff were aware of the firm’s difficulties and had feared the worst.
However, Ms Middlebrook added, “I could never say that something like this does not come as a surprise to staff.
“The news will have been extremely upsetting for the workforce. Our job is to help make the transition as smooth as possible. Our immediate priority is the staff.”
Hopes of finding a buyer appear to be minimal.
Mr Wishart said he would speak with receivers and bosses at the firm to see what assistance he could offer.
He said, “This is obviously a tragedy for all those involved and a dreadful blow to the Perthshire economy, with a well-known and reputable local company being lost.
“While many aspects of the Perthshire economy had been weathering the recession comparatively well, the construction sector has had a very tough time over the last couple of years.”It is bitterly disappointing to see Clachan fall victim to the downturn.”