Blair Nimmo and Alistair McAlinden from Interpath Advisory were appointed on 7th January as joint provisional liquidators of Iain Potter Construction Limited (IPC) by the company’s sole director.
The Company, based in Carluke in South Lanarkshire, was incorporated in 2014 and provided a range of construction services to the health, education, housing, custodial and public sectors, as well as private commercial and industrial clients. Rrising labour and raw material costs, coupled with increasing overheads and certain contractual difficulties, meant that the company found its cash flow severely constrained.
The liquidators said that, despite actions being taken by the director to improve the company’s financial position, sufficient new funds could not be secured, nor costs sufficiently reduced. Accordingly, the director sought professional advice and, ultimately, the appointment of provisional liquidators.
With no available funding, the company ceased trading immediately. Interpath Advisory said that the joint provisional liquidators had no option but to make all of the company’s 33 staff redundant upon appointment.
Blair Nimmo, chief executive of Interpath Advisory and joint provisional liquidator, said: “The collapse of IPC is another worrying sign of the challenges presently facing the Scottish construction sector and, particularly, subcontractors. IPC was a well-known contractor and its insolvency will, unfortunately, not be the last we will see in the early months of 2022.”
Alistair McAlinden, managing director of Interpath Advisory Scotland and joint provisional liquidator, added: “Our immediate priority will be to assist employees with their claims to the Redundancy Payments Office, as well as safeguarding the Company’s assets and liaising with IPCs customers.”