Muirfield Contracts to be scaled down
The administrators of Muirfield Contracts Ltd have announced they have begun an orderly wind-down of the business following a thorough review of the company’s affairs.
Derek Forsyth and David Hunter of Campbell Dallas LLP were appointed to Muirfield Contracts on Thursday and warned that “significant” redundancies would have to be made within the firm’s 280 strong workforce. The company had suspended trading operations in the days leading up to the appointment of administrators.
Muirfield had been suffering from tough trading conditions and unsustainable cash flow problems, and had been unable to secure additional investment.
Derek Forsyth, head of business recovery and insolvency at Campbell Dallas, said: “We were not in a position to recommence trading and had no option other than to begin an orderly wind-down of the business. As a result we very much regret that 258 employees have been made redundant and that the company is no longer in a position to offer work to around 110 labour only sub-contractors who had been engaged prior to administration. We have written to all employees affected by redundancy and letters to the labour-only sub-contractors are currently being issued.
“We are retaining a core staff of 25 to assist with the on-going assessment of the contracts position and to help with the wind-down of the company’s affairs. We are fully aware of the impact of the redundancies on the local economy and communities. My team and I will be working with all relevant agencies, the trade union, local politicians and third parties to provide as much support as possible to all employees.
“Unfortunately the business had effectively ceased trading prior to our appointment and its position was untenable and unsustainable. We will now focus on the wind-down process and will look to realise as much value as possible from the contracts and sales of any physical assets such as property, plant and vehicles. We would encourage interested parties to make contact with us as soon as possible.”