Buyer is lined up for collapsed construction firm

A POTENTIAL buyer has been found for collapsed construction firm Mcgill and Co.

However, it is unclear at this stage how many of the remaining staff would be retained.

It was announced when the firm went into administration at the start of the month that 374 would be made redundant with immediate effect.

The company employed 429 across its Dundee headquarters and offices in Glasgow and Edinburgh.

Blair Nimmo, global head of restructuring and joint administrator at KPMG, said: “The joint administrators are pleased to announce they have appointed Catalus Energy Investments Limited as the preferred bidder and granted them a short period of exclusivity to acquire the business and certain assets of Mcgill & Co Limited - in administration.”

He added: “Agreement of the sale is subject to due diligence and contractual agreement, however, both parties are hopeful that a transaction can be concluded in early course.

“Further information will be available in due course.”

At the time of the first announcement it was said the 55 staff retained would assist in realising the company’s assets including numerous contracts, an “extensive order book” and construction equipment.

Set up in 1981, the firm traded through five divisions including mechanical and electrical services, fibre and wireless, facilities management, social housing and private residential housing.

The earlier statement by joint administrators Blair Nimmo and Geoff Jacobs said challenging conditions in the construction sector and trading disputes resulted in a “significant funding shortfall”.

The directors approached potential investors with a business turnaround plan but were unable to secure funding at that stage.

It led the firm to cease trading, described as the only option to best protect creditors.