THE Scottish Government has issued a statement following the news that a major Scottish housebuilding firm has gone bust.
It was announced on Monday that Stewart Milne Group has entered administration with the immediate loss of more than 200 jobs.
The construction firm, based in the north-east of Scotland, said it faced “significant challenges” since Covid, with administrator Teneo confirming that 217 jobs would be affected with hundreds of other sub-contractor positions also expected to be impacted.
Responding to an urgent question from Tory MSP Douglas Lumsden (below) asking what discussions the Scottish Government has had with the firm’s administrators, Wellbeing Economy Secretary Neil Gray said he met with administrators this morning (January 9).
He added: “I made clear to them that I want to see every possible support to be offered to affected staff, contractors, suppliers and homebuyers.
“People affected by this announcement are our immediate priority.”
The SNP MSP added that the Scottish Government was offering support through their Partnership Action for Continuing Employment (PACE) and that recruiters had “already” approached those affected by the redundancies.
Asked by Lumsden whether there will be help for those affected indirectly by the announcement, including those with homes still yet to be built by Stuart Milne, Gray noted that this was a new situation and that as the situation develops, he will “do everything I can to ensure colleagues are up-to-date.”
First Minister Humza Yousaf previously called the news “concerning” and said that it was “undoubtedly a huge shock for the workers impacted”.
Reacting to the news on Twitter/X, Humza Yousaf said: “This is very concerning news and undoubtedly a huge shock for the workers impacted."
Staff were invited to an online call on Monday afternoon and were informed of the decision.
They were told they would not be paid from the week before Christmas or for work completed on Monday.
In a statement, the group’s founder Stewart Milne said: “I am devastated by this totally unexpected outcome of the sale process and struggling to accept it, given the profound impact it will have on employees, sub-contractors, suppliers and customers.
“Stewart Milne Group was up for sale and, following significant interest, two bids were submitted.
“The bank has not accepted either bid and withdrawn its funding which left the directors with no option but to appoint administrators.
“I tried everything I could to find a way to achieve a better outcome for the business and the people who depend on it. I believe one of the bids could have delivered a comparable, financial return to administration and, crucially, allowed the business to continue to operate, safe-guarding hundreds of jobs and protecting livelihoods.”
