Scotland business

Delay to Maggie's Centre after Dunne Group folds

Maggie's Centre at Forth Valley Royal Hospital Image copyright Maggie's Centre
Image caption Construction work on the Forth Valley Maggie's Centre began in March last year

The opening of a cancer support centre in Larbert could be delayed after a building firm collapsed.

The Dunne Group won the contract to build the Maggie's Centre at Forth Valley Hospital which was due to open later this year.

However the firm went into administration on Tuesday, with the immediate loss of more than 500 jobs.

A spokeswoman for Maggie's Centres said it was putting in place arrangements to "minimise any delay".

"Following the news last night that the Dunne Group has gone into administration, our thoughts go out to the staff who have lost their jobs," she added.

"We are in the process of planning other arrangements for the completion of Maggie's Forth Valley so as to minimise any delay to the completion of the centre."

The Dunne Group began work on the cancer support centre in March 2015 and it was expected to be completed this summer.

Image caption The Dunne Group, which had sites across the UK, had its headquarters in Bathgate
Image copyright NHS
Image caption The new children's hospital is due to open in 2017 in Little France

The contract for the Maggie's Centre was one a series of high profile projects with which the firm was involved.

It was also involved with the construction of the new Royal Hospital for Sick Children in Edinburgh, which is due to be completed in 2017.

However it is unclear whether Dunne Group's collapse will affect the project.

A spokesman for IHS Lothian, the consortium in charge of building the hospital, said it would not comment on the situation.

Administrators for the Bathgate-based Dunne Group said it had ceased trading with "immediate effect" as it faced "severe cashflow issues".

Employee support

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

Meanwhile West Lothian Council leader John McGinty said news of the company's collapse was "extremely disappointing news".

"Details are slowly coming out and, at this time, we are unsure how many people affected live in West Lothian," he said.

"However, I can assure all of them that the council is working with Scottish Development Scotland to ensure that the appointed administrators contact all employees as quickly as possible to provide them with all the help and support available, through the PACE (Partnership Action Continued Employment) pack."

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