Difficult decision and devastating outcome

Madam, – It goes without saying that you and your readers will be well aware that these are extremely challenging and uncertain economic times.

This business environment is therefore putting increasing strain across the Scottish business community with the regrettable consequence that some businesses will not survive. There have been a number of recent high profile cases, not least in Dundee with Michelin and McGill & Co.

Scottish Enterprise, its partner agencies and local authorities are here to support as many of these businesses as possible when they get into difficulty. And in many cases, we can and do support them to either remain sustainable or turnaround, seizing the opportunities available, such as the case of Michelin. However, no matter how motivated we are, there simply isn’t the prospect to save every company.

It is extremely disappointing that we were unable to help McGill & Co through their difficulties, though I am confident that the decisions we took in relation to their situation were correct. However, there are two particular areas of criticism of our handling of the situation that need to be addressed.

Firstly, I do not accept that we failed to act quickly enough following the initial notification that the company was in some difficulty.

When contacted by them in November last year, we acted immediately to establish the full extent of their financial problems and explore every possible avenue available to turn around what was an incredibly complex and challenging situation. In doing so, we worked closely alongside the company’s management team and independent advisers to try and find a solution to safeguard a long-term future for the company and its employees.

And though the time available for turnaround and due diligence was a factor, the suggestion that this was the main reason for Scottish Enterprise turning down the request for a loan is inaccurate. The fact is that a large taxpayer funded loan was simply not going to solve the company’s financial issues, an assessment validated by the independent advisers.

I fully appreciate that the demise of McGill & Co is devastating for all those involved. Scottish Enterprise remains here to help and our focus, along with our partners, must now be to support those individuals, families and communities affected. Steve Dunlop, CEO. Scottish Enterprise, Glasgow.