99 jobs lost as city firm fails

Second Dundee firm with links to Thomas John Stodart collapses

Almost 100 contractors have been dumped on the work scrapheap after the collapse of a Dundee electricals and mechanicals firm.

Provisional liquidators Johnston Carmichael were appointed to Scottish Electric Group (SEG) on Tuesday and all of its 99 staff were immediately let go.

Restructuring partner Donald McNaught said the business had faced prolonged cash flow pressures and was no longer viable as a going concern.

“Our main objective going forward will be to preserve value in the Scottish Electric Group’s remaining assets to maximise the return to creditors,” he said.

“Unfortunately, the process has resulted in job losses and we will work with the relevant government agencies to ensure employees are provided with the appropriate support.”

In the months up to its collapse, SEG had been appointed by principal contractor Balfour Beatty to carry out a range of electrical and mechanical work on the new Dundee railway station.

One former SEG worker said the firm had not received the financial backing it required to grow from its owner, the controversial businessman Thomas John Stodart.

The insider – who asked not to be identified – also alleged many local suppliers had put a stop on new materials being dispatched to SEG sites, causing significant problems.

“We were tasked with growing the company from £1.2 million (turnover) four years ago to up to £10m – and we were told we would get the financial backing to do so.

“But when push came to shove, the backing wasn’t there.”

The worker continued: “It has been on the cards for a while now.

“On jobs, the guys couldn’t get materials as we’d been put on stop by suppliers in Dundee.

“We’d been mentally preparing for it – we’d all just been living week to week – but it is sad.

“The management team stood its part of the bargain and did what was asked of them.”

The Courier contacted Mr Stodart yesterday and he strongly refuted the claims (see right).

He said he had ploughed £1.2m of his own cash into the business and had continued to invest in the company right up until last week.

Mr Stodart previously hit the headlines following the sudden collapse of Muirfield Contracts, one of the region’s largest independent building contractors, in the spring of 2015.

The firm’s demise led to almost 300 contractors losing their jobs without any prior warning.

Muirfield’s collapse – and the conduct of its directors – is currently the subject of a long-running probe by the UK Insolvency Service.

The organisation confirmed that its investigation remains active more than two years on and there is no immediate end in sight.