MORE than 300 jobs have been lost after two constructions firm, one of which worked on the Edinburgh Trams project, went into receivership.
Civil engineering firm Crummock yesterday told its employees the company has gone into receivership with the loss of 287 jobs.
Employees at the company, based near Bonnyrigg in Midlothian, were informed that severe cash flow problems had led to claims from creditors.
Accountancy firm Johnston Carmichael has been appointed as receivers and the company has ceased trading.
The company said last year that a lack of orders from the Scottish Government and a reduction in local authority budgets posed the biggest risk to the business, although it expected to turn over £34 million this year. Midlothian Council said the collapse will be “a real blow to the local economy and to the council.”
Matt Henderson, restructuring partner at Johnston Carmichael, said: “Crummock is a long-established construction business which, like many in the industry, has suffered from reduced margins in recent times.
“In recent months it has also encountered cashflow difficulties due to high retention levels, the tight margins within the sector and business specific issues.”
“Unfortunately, the business was unable to raise the capital to enable it to overcome the current financial challenges it faces and we are now dealing with creditors’ claims.”
Councillor Russell Imrie Midlothian Council’s economic development leader said he would seek meetings with Crummock to discuss support for those who have lost their jobs.
Councillor Russell Imrie said: “We’re shocked and saddened to hear a respected and well-established local employer Crummock is to close with the loss of nearly 287 jobs. This is a real blow to the local economy and to the council.
“We’ve had a positive working relationship with the firm for probably three decades now. Indeed, Crummock is one of our framework contractors although there’s no outstanding contracts currently.
“We will be seeking a meeting with Crummock as soon as possible to discuss what support we can give at what is obviously a very distressing time for its workforce and management.
“No amount of words can replace the jobs and put food on the table.”
Crummock offered a wide range of civil engineering and surfacing construction expertise including groundworks, infrastructure works, roadworks and road surfacing.
It has been involved in a number of civil engineering projects around Scotland, including the installation of concrete slabs in St Andrews Square for the Edinburgh Trams.
The firm also contributed to a number of landmark developments, such as the renovation of Donaldson school residential development in Edinburgh, Fort Kinnaird Retail Park and Shawfair, a major drainage infrastructure project south east of Edinburgh.
A provisional liquidator has also been appointed to T Graham & Son (Builders), a contractor based in Langholm in Dumfries and Galloway, with the loss of almost 30 jobs.
The firm, founded in 1982, employed 30 staff all of whom have been made redundant with the exception of three staff who have been retained to assist the liquidator.
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