Oban building firm calls in administrators

The biggest construction firm in Oban has gone into administration with up to 20 redundancies and implications for local sub-contractors.

Directors at family-run building company Neil McGougan Ltd officially called in administrators on May 5 with employees told last week.

Accountancy firm Campbell Dallas has been appointed and will try to find a buyer for the firm’s assets of plant equipment, vehicles and tools.

The well respected business was established 34 years ago by Neil McGougan of Taynuilt, who remained a director and majority shareholder, with son Craig as project manager, and mum Jan as company secretary.

Neil Forsyth, head of insolvency

The company’s Sinclair Drive depot.

and restructuring for Campbell Dallas, told The Oban Times the McGougans had made ‘strenuous efforts’ to save the firm but were no longer able to meet its outstanding liabilities.

‘I have spoken to the directors and the family and it would be correct to say they did everything they possibly could to keep it going and avoid going into administration,’ said Mr Forsyth.

He said they were extremely ‘conscious’ of the impact it would have on local employees and local sub-contractors, including joiners, electricians and heating engineers, which benefited from major contracts won by the firm.

Campbell Dallas pledged to do ‘all it can’ to recover monies owed to people.

The company had suffered from not being able to trade or generate cash flow since lockdown, he said. Construction work on ‘non-essential’ sites was ordered to stop following the coronavirus outbreak, with pressure growing on the government for a rethink.

‘This is a very difficult time for the construction industry across all of Scotland and I believe they are the biggest building firm in Oban, wellknown and well-regarded,’ said Mr Forsyth.

‘Twenty employees have been made redundant, it is not trading and we are seeking a buyer for its assets of plant equipment, vehicles and tools.’

Lesley McInnes, chief executive of the West Highland Housing Association, paid tribute to the firm.

‘We have had a relationship going back since 2004 and in that time it’s obviously always been a very good, positive relationship,’ said Mrs McInnes.

‘They offered good workmanship and the association is very sad to learn about this, both for the employees, the family and all the sub-contractors.’

‘A lot of the sub-contractors are local who we know and have a relationship with as a community organisation.’

The Oban Times has approached the family for comment.