Tue, 12 May 2020 | ADMINISTRATION
Scottish construction business Neil McGougan Limited has gone into administration after suffering severe cashflow disruption due to the coronavirus lockdown. The family-owned contractor, founded in 1986, is the largest construction business in the town of Oban.
With a wide client base throughout the surrounding Argyll and Bute and West Highlands areas, the company provides a range of construction services. Joint administrator Derek Forsyth described the firm as “long-established and highly respected”.
It had recently been appointed to West Highland Housing Association’s £3.5 million major repairs and investment programme. However, in line with coronavirus restrictions on construction activity at non-essential sites, the company’s projects have been shut for over five weeks.
This closure impacted the company’s cash flow and it ceased trading last week. 20 staff have been made redundant, with Derek Forsyth and Blair Milne from Campbell Dallas appointed as joint-administrators.
Forsyth said: “The directors did everything possible to keep the business trading. However, the scale of cashflow problems and the impact of the lockdown left them with no alternative other than to place the business in administration.”
“We will now focus on winding up the business and providing as much help as possible for the employees.”
The administrators will seek buyers for the company assets, including plant, vehicles and equipment, with interested parties asked to make contact as soon as possible. In its most recent accounts, made up to the year ending December 31 2018, the company registered net current assets of £287,800.
Neil McGougan’s administration follows that of Glasgow-based Central Building Contractors at the end of April, as coronavirus exacerbated difficult trading conditions in Scotland’s construction industry.
First Minister Nicola Sturgeon has confirmed that non-essential construction work in Scotland will remain banned, despite Prime Minister Boris Johnson allowing construction in England to resume.
View the latest distressed UK businesses here.
An opportunity has arisen to acquire a business that supplies, erects, and dismantles scaffolding for blue-chip organisations across the housing sector, all of which provide repeat business on an ongoing basis.
LEASEHOLD
This established business is a leading UK provider of multi-disciplinary services to the rail and transportation sector is now for sale.
This established business has more than a quarter-century of experience in supplying marble and other natural stone materials. These are sourced from a strong and dependable international supply chain of ISO-certified suppliers that is now on the mar...
|
17
|
|
Jan
|
Buyer sought as precision engineering firm enters administration | ADMINISTRATION
First Components, a precision engineering firm based in Brie...
|
14
|
|
Jan
|
Construction ledger up for sale as East Yorkshire contractor collapses | ADMINISTRATION
PDR Construction, a contractor based near Hull in East Yorks...
|
13
|
|
Jan
|
Lancashire-based online retailers enter administration amid stock and financial troubles | ADMINISTRATION
Two Lancashire-based online retailers have fallen into admin...
Sign up to receive our acquisition alert emails to get your FREE guide
|
01
|
|
Dec
|
Railway operator enters administration | ADMINISTRATION
Following cash problems due to an extended closure, CairnGor...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources