Scotland business

Building firm Dunne Group collapses with loss of 524 jobs

Dunne Group

More than 500 staff have lost their jobs after a leading Scottish construction firm collapsed into administration.

The Dunne Group faced "severe cashflow issues" and had ceased trading with "immediate effect", its administrators said.

They said the move would result in the immediate loss of 524 jobs across the group, which is based in Bathgate.

It will affect 200 people in Scotland, with 16 retained to help the closure.

A total of 311 people will be made redundant in London and 13 in Leeds.

The firm has been involved in the construction of some major projects, including the new Queen Elizabeth University Hospital in Glasgow.

Image copyright NHSGGC
Image caption The Dunne Group was involved in constructing a new hospital in Glasgow

Joint administrator Tom MacLennan said: "This is a sad loss for the construction and building industry.

"The business faced substantial trading losses on some contracts, leading to severe cashflow pressures.

"Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available."

He added: "Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant.

"A team of 16 staff will be retained to assist with the closure process and realisation of the business' assets.

"Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time."

Outstanding contracts

According to the Dunne Group's website, the firm is also involved in a number of projects that were still under construction.

A spokesman for the administrators said: "The joint administrators are assessing the position with regards to a small number of outstanding contracts across the UK."

Mr MacLenann, Iain Fraser and Geoff Rowley, partners at FRP Advisory, have been appointed joint administrators to the Dunne Group and five subsidiaries.

They said the firm's turnover last year was £74m and it was forecast this year at £96m.

The business was founded in 2001 and it had grown rapidly in recent years, winning three high-profile contracts in London - Newington Butts, 100 Bishopsgate and One Blackfriars.

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