Scotland business

Ayr electrical firm John McCaig & Son collapses

A well-established Ayrshire electrical firm has called in liquidators, with the loss of 17 jobs.

John McCaig & Sons Ltd, which operated in Ayr for 27 years, said it could no longer trade after suffering cash flow difficulties.

The firm, which had a branch in Glasgow, blamed main contractors for failing to make payments on time.

Company directors John and Frances McCaig said they were "devastated" that their staff had lost their jobs.

Steps were taken to enter the firm into liquidation after the directors sought advice from accountants PKF.

Frances McCaig said: "Due to a significant number of main contractors having a difference of opinion with us on how much they owe us and when they owe us it, it is with deep regret that it has become impossible for us to continue trading.

"Any small to medium-sized business owners out there working in the construction industry will identify immediately when we say that the construction industry is on its knees.

"It has become more difficult to 'agree' valuations with main contractors and that in turns puts severe pressure on cash flow."

He added: "We were working harder than we have ever worked, however no matter how hard you work, if you don't receive payments on time then all your hard work is fruitless. "

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