East End Sawmills taken into receivership

Image caption,
The receivers said that East End Sawmills was the victim of a downturn in the industry

A Glasgow-based sawmill has been taken into receivership following the downturn in the construction industry.

East End Sawmills was a family-owned business employing 55 staff across two sites.

Joiner Robert Frew started the firm in Dalmarnock in 1951.

The firm, which provides domestic and commercial timber for homes and gardens, continued to trade under the management of his son and grandson.

Bryan Jackson, PKF corporate recovery partner, said: "Like many businesses, East End Sawmills has found itself the victim of a succession of problems which has resulted in its insolvency.

"The firm had a compulsory purchase order on its original premises at Dalmarnock to make way for the Commonwealth Games site.

"They invested £1.5m in their move to new premises at Shawfield and Cumbernauld which was completed in 2008 when the recession was at its peak and incurred £350,000 worth of bad debt due to the collapse in the construction industry in 2009."

He added: "The firm then invested in a new log processing line which was completed in December 2009 but this experienced delays in getting started due to the excessive winter conditions.

He said this prevented log delivery, resulting in a massive reduction in cash flow.

"The impact of the recession on the construction industry is widely known and East End Sawmills is another victim of a sector which has experienced an enormous downturn," Mr Jackson added.

Scottish Building Federation chief executive Michael Levack has said the latest preliminary insolvency figures for the past three months increased by 245% from the same period last year.

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