Scottish building firm, The Dunne Group has ceased trading following severe cash flow issues. More than 500 people have lost their jobs after the firm’s collapse which is based in Bathgate. The closure will affect 200 people in Scotland; however 16 will be retained to help with the closure. A further 311 will face redundancy in London and 13 in Leeds. The Dunne Group had been involved in major construction projects including the new Queen Elizabeth University Hospital in Glasgow before experiencing cash flow problems that led to administration of the company.
Tom MacLennan, Joint Administrator said “This is a sad loss for the construction and building industry. The business faced substantial trading losses on some contracts, leading to severe cash flow pressures. Additionally, rapid expansion led to pressure on working and requirements for significant, additional funding that was not available.”
MacLennan added “Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant.”
According to the building firm’s website, they were involved in a number of projects that are still currently under construction. The firm’s turnover last year was £74m and it was forecast this year at £96m.
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