Torith Limited, a Tayside-based long-established construction firm, which also runs civil engineering and property development businesses, has entered administration with the loss of over 80 jobs.
The administrators Andrew Davison and Colin Dempster of Ernest & Young LLP have kept on 24 members of staff at Torith Limited. Subsidiaries Torith Developments Limited and Drumoig Limited have also gone into administration.
After being involved in various building projects in the Dundee area over the past 30 years, the company has fallen victim to the effects of the recession on the construction industry. The main problem was its declining order book and the directors decided that the business could simply no longer continue to trade.
The administrators are currently focusing on reviewing the situation and on achieving the "maximum realisation of the assets for creditors".
Torith's financial situation had been subject to speculation for some months, and the business may owe several other companies money. Staff are to wait until the New Year to find out about any redundancy package.
In the last recorded accounts at Torith Limited for the year to 31 August 2008 the turnover was £31.21m.
It is feared that other local construction businesses may suffer from the withdrawal of contracts related to Torith.
