McGill set for administration again with 120 jobs at risk
Construction firm McGill, who recently won contracts with Dundee City Council and the Scottish Police Authority, and several housing associations, is preparing to enter administration for the second time in less than four years, according to a report by The Courier.
McGill Facilities Management Limited has submitted a notice of intent to appoint administrators with the Court of Session, placing 120 jobs at risk.
Interim liquidators at William Duncan (Business Recovery) Limited have been appointed.
The Dundee-based firm previously went into administration in January 2019, causing around 400 employees to lose their jobs.
In March 2019, the McGill assets were initially purchased from administration for around £1 million by Dundee businessman Graeme Carling. They were purchased under his company Catalus Energy Investments Ltd. This business, which was renamed Qwerty100 Ltd at the end of last year, is currently being pursued by HMRC for unpaid liabilities.
However, a company spokesman has now revealed that its lender, Lloyds Bank, had withdrawn its support, leaving it with no working capital.
A spokesman for McGill said the company is now following the advice of a restructuring specialist. He said: “As a fast-growing business, working capital is essential. Up until recently, McGill Facilities Management Ltd had a facility provided by Lloyds Bank. Recently the business received notice that Lloyds were removing the working capital bank facility due to a change in their perceived risk in the construction sector.
“This is a problem facing the entire building industry. With such a quick reduction in working capital, the company is facing significant operational challenges and the board of directors at McGill have appointed a specialist corporate restructuring firm to advise.
“On Friday, the business filed a notice of intent to appoint administrators with the Court of Session.
“McGill continues to operate, delivering work for clients across Scotland.”