Jobs have been saved at McGill Facilities Management, after the fire and security division of the company was sold by administrators at Leonard Curtis.
The Dundee firm, based on Harrison Road, has been working in the commercial and public sector for more than 40 years – offering contractor, refurbishment and fit-out specialist services.
But the business - having previously been brought out of administration - came under financial pressure again due to a combination of factors caused by the pandemic, a number of loss-making contracts and material price inflation.
The refurbishment and fit out firm first went into administration in February 2019, with the loss of 374 jobs. It was then acquired by United Capital, which backed a strategy of expansion and acquisition.
But earlier this month, McGill submitted a notice of intent to the Court of Session to appoint interim liquidators, with William Duncan (Business Recovery) hired - with expectations that most of the remaining 120 jobs would be lost.
However, with Barry Stewart and George Lafferty of Leonard Curtis being appointed joint administrators on 25 August, McGill’s fire and security division has become the subject of a pre-pack administration.
Operating to a tight timescale, the administrators, with help from the company’s director, marketed the business and assets to a relevant audience, liaising with a number of interested parties.
A buyer was found in SPG Fire & Security, a Galashiels-based firm which intends to continue operations and service the division’s current customer base.
Joint administrator Barry Stewart said: “The company had been struggling with regards to cashflow in particular for a period of time and despite accessing government assistance via the Coronavirus Business Interruption Loan Scheme, insolvency was unavoidable and the business was marketed for sale.
“We are pleased to say this process resulted in the going concern sale of the fire and security division which will assist in maximising realisations for creditors whilst protecting a number of jobs.”
Errol Lawrie, director at McGill Facilities Management, commented: “This has been a particularly difficult period for all the employees and customers and whilst it is disappointing that we were unable to save the whole business, it does give me some comfort we were able to save this division and a number of local jobs.”
Simon Gillie, managing director at SPG Fire & Security, added: “The acquisition of this well-respected division further enhances our position in the fire and security market and I am delighted to now be working with the team and continuing to look after its customers and clients.”
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