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Central Building Contractors (Glasgow) Limited in administration

Central Building Contractors (Glasgow) Limited in admin

Blair Nimmo and Geoffrey Jacobs of KPMG LLP were appointed as Joint Administrators of Central Building Contractors (Glasgow) Limited (“the Company”) on 29th April 2020.

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Established in 1971, the Company is a privately owned, family run Scottish construction company, providing a range of construction design, development and maintenance services throughout Scotland. Headquartered in Glasgow, it employed 159 people.

In recent years, the Company has suffered from challenging trading conditions in the construction sector and has encountered reduced margins, contract disputes and delays in the commencement of a number of significant projects. Despite the directors taking various actions to address the position, these factors left the Company with a significant funding shortfall.  At the time of appointment, in accordance with the Government’s guidelines all the projects had been closed for the previous 5 weeks.

Regrettably, as with most insolvencies within the construction sector, it is not possible for the Company to trade in Administration, even should the lock-down be removed in early course. As such, following consideration of all available options, the Joint Administrators required to make 148 employees redundant immediately following appointment, with 11 members of staff being retained to assist with the administration process.

The Joint Administrators are rapidly exploring whether an early sale of some of the business and assets can be secured. The Company’s assets include three freehold properties, numerous contracts, order book, work in progress and construction equipment.

Blair Nimmo, Joint Administrator and KPMG’s UK Head of Restructuring, said:

“Central Building Contractors (Glasgow) Limited has a rich history and is a well-known and highly regarded business in Scotland, but, despite the efforts of the directors, the business faced a range of cashflow challenges in recent times, which were amplified by the recent Covid-19 lockdown”.

“We will be working to support the employees and have already initiated matters with relevant government agencies to ensure the full range of support is available to all those affected.”

“We would encourage any party who has an interest in acquiring any part of the business and assets to contact us as soon as possible.”

James McAlpine, Director at Central Building Contractors (Glasgow) Limited, commented:

Already difficult trading conditions have been greatly exacerbated by Covid-19 which has made our financial position unsustainable.  It is with significant regret that administration has been necessary.  We have been very fortunate to have loyal and hard-working staff, a supportive supply chain and professional partners, many of whom have worked closely with the business for a great many years. We will work closely with the Administrators to ensure every possible assistance is provided to all our employees during this exceptionally difficult time.”

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Notes to Editors:         

For media queries, please contact:
Brian O’Neill, Corporate Communications Manager                                                                          T: 07823 668 689 E: Brian.ONeill@kpmg.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 17,600 partners and staff.  The UK firm recorded a revenue of £2.40 billion in the year ended 30 September 2019. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such. 

© 2020 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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