Specialist access equipment supplier Adastra Access has appointed administrators.
Operating from its base in Glasgow, the company provided mast climbing work platforms and suspended cradles to contractors operating across commercial and residential construction, maintenance and refurbishment of buildings and the construction of maritime transport.
Historically, it had a strong order book, with a number of large-scale projects across the UK.
However, in more recent years, Adastra had been faced with "significant operational, health and safety and financial challenges", which resulted in trading losses and significant cash flow pressure.
Despite a recent injection of funding from the company’s shareholder and the efforts of directors to safeguard the future of the business, the financial position deteriorated so far that it was no longer considered viable.
The company has now ceased to trade and, as such, 38 employees have been made redundant, with two being retained in the short term to help administrators.
Blair Nimmo, chief executive of Interpath Advisory and joint administrator, said: "The collapse of Adastra Access is another indicator of the challenges and economic headwinds currently facing the Scottish and UK construction sector and in particular, subcontractors.
"The directors fought hard to save this business, but it was ultimately impossible to mitigate the impacts of labour shortages, rising costs and delays to customer projects."
Alistair McAlinden, head of Interpath Advisory in Scotland and joint administrator, added: "Our priority is to assist those members of staff who have been made redundant, providing them with the information and support they need to claim their statutory entitlements, as well as to support the directors and ultimate owners, for whom this is also a very difficult time.
"We are in contact with various government support agencies, including Partnership Action for Continuing Employment, who are also fully committed to assisting impacted employees."
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