DOZENS of people have been made redundant after a Dundee “institution” folded after 160 years.
Dovetail Enterprises, a charity which manufactures furniture and helps provide long-term employment for people living with a disability, called in administrators and saw 47 of its 51 staff made redundant.
The charity’s roots go back to 1865, when the project which would become Royal Dundee Blindcraft Products was set up to provide work, support, and education for people with visual impairments.
A Lord Roberts Workshop was established in Dundee to provide employment for disabled ex-servicemen in the 1920s, and these two charities were merged into Dovetail Enterprises in 1993.
Now, the firm has appointed administrators Geoff Jacobs and Alistair McAlinden amid “significant financial challenges”.
The administrators said that revenues at the firm, which produced safety doors, mattresses, and bed bases, had not kept pace with rising costs.
Consultants Interpath Advisory said: “Amidst cost inflation, an ageing factory, and a competitive market, Dovetail needed significant capital investment.
“However, despite exhaustive efforts in examining multiple routes and liaising with a range of stakeholders, the board has not been able to secure the necessary funding.
“Now, without further funding, the business is unable to continue trading and led to the board reluctantly having no other option than to seek the appointment of the joint administrators.”
Dovetail has ceased trading with only four of 47 staff avoiding redundancy. They have been kept to assist the administration process.
Interpath said that the team was “engaged with multiple agencies to co-ordinate a package of measures to support employees and are also exploring options to sell the business and assets”.
“A Dundee institution for more than 150 years, it’s provided employment to many disadvantaged and disabled residents.
“I understand [the Scottish Government’s Partnership Action for Continuing Employment (PACE) team] will be providing tailored support.”
Jacobs, a managing director at Interpath and joint administrator at Dovetail, said: “Supporting employees through this incredibly difficult period is an absolute priority for us. Our specialist team on site is co-ordinating a package of measures alongside multiple agencies, including the Scottish Government through PACE and Dundee City Council, to provide as much assistance as possible to staff.
“The package incorporates a range of initiatives comprising DWP Work Coach support, Disability Employment Advisers, Access to Work claims support, and assistance with applications to the Redundancy Payment Service, which together will help guide staff through the process and towards new employment.
“Dovetail has been a prominent enterprise in Dundee for generations and has made a tremendous impact on the lives of many people in the local community.
“Unfortunately, despite the Dovetail brand being well known for quality products, the financial position of the business was not sustainable and, it is disappointing that despite the significant efforts of the board, trading could not continue.
“We are now rapidly exploring options to sell the business and assets, which include, among other things, a well-positioned property, strong brand name and order book, and encourage any interested parties to come forward very quickly.”
McAlinden, also managing director at Interpath and a joint administrator at Dovetail, added: “This is far from an isolated case for the third sector. We have worked with a significant number of charities in recent months as they suffer from many of the same challenges that Dovetail has experienced, from funding cuts or struggling revenues to rising costs that put margins under real pressure.”
