LAND & Building Services, the Dundee-based construction firm, has gone into administration with the loss of all 27 jobs.
The insolvency was caused by difficult trading conditions and the loss of major client McGill & Co, the fellow Dundee business which went bust last week. More than 370 people were immediately made redundant at McGill, which ran into a "significant funding shortfall" amid a trading dispute and challenging conditions in the construction sector.
Administrators at Campbell Dallas said the loss of the McGill work contributed to severe and unsustainable cash flow problems at Land & Building Services, which was founded in 1990.
The company, which gained recognition for its work on the Linlathen East Bridge, Scotland's oldest iron bridge, from the Saltire Society and Historic Scotland, has ceased trading with immediate effect.
The failure comes with Dundee still reeling from the announcement by Michelin before Christmas that it would shut its tyre factory in the city with the loss of almost 850 jobs.
Derek Forsyth, business recovery partner with Campbell Dallas said: “The trading and cash flow problems affecting the construction sector are well-documented, and unfortunately Land & Building Services has been affected by these issues, together with the loss of a major client (McGill & Co) in the Tayside market.
“We will now be marketing the company’s assets for sale, including remaining contracts, and a wide range of plant and equipment, and would urge interested parties to contact us as soon as possible. We will also be working closely with the relevant agencies, including the Redundancy Payments Office, to ensure the employees receive as much support as possible."
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here