All 27 members of staff at Land & Building Services have been made redundant and the company has ceased trading.
The company’s administrator said that the problems had been caused by difficult trading conditions and the loss of a major client – McGill – resulting in 'severe and unsustainable' cash flow problems.
Derek Forsyth, business recovery partner with administrator Campbell Dallas, said: “The trading and cash flow problems affecting the construction sector are well-documented, and unfortunately Land & Building Services has been affected by these issues, together with the loss of a major client (McGill & Co Ltd) in the Tayside market.
“We will now be marketing the company’s assets for sale, including remaining contracts, and a wide range of plant and equipment, and would urge interested parties to contact us as soon as possible. We will also be working closely with the relevant agencies, including the Redundancy Payments Office, to ensure the employees receive as much support as possible.”
Land & Building Services, which was founded in 1990, provided a broad range of services to the construction sector and had worked on several award-winning projects, including Scotland’s oldest iron bridge. It had won recognition for its work from the Saltire Society and Historic Scotland.
McGill went into administration on 1st February, with th eloss of hundreds of jobs. KPMG is handling its affairs.
Blair Nimmo, global head of restructuring for KPMG and joint administrator, said last week: “McGill & Co Limited is a well-known, long established business and provides a significant source of employment, particularly in Dundee both directly and through the supply chain. Disappointingly, market conditions and contract related disputes have required the business to cease trading. We will do everything we can to seek a buyer who may be able to protect some of the business and maximise recoveries for creditors.”