News Scottish Builders Dunne Group Collapses Administration Loss More 500 Jobs

More than 500 workers have lost their jobs following the collapse of Scottish building contractor Dunne Group.

Founded in 2001, the Bathgate-based concrete specialists “faced substantial trading losses on some contracts, leading to severe cash flow pressures,” according to administrators FRP Advisory.

Tom MacLennan, Iain Fraser and Geoff Rowley, partners at the business advisory firm have been appointed as joint administrators to the Dunne Group, which also operated from sites in Glasgow, Leeds, Dublin and London.

The construction company, owned by 49-year-old civil engineer Gordon Dunne, provided an extensive range of civil engineering, building, construction, infrastructure, contracting and plant hire services and had a turnover of £74m last year.

The business had grown rapidly in recent years with major contract wins including three high profile projects in London – Newington Butts, 100 Bishopsgate and One Blackfriars, ceased trading yesterday (Tuesday, July 19) with immediate effect resulting in the immediate loss of 524 of the 540 jobs employed across the group.

Joint administrator MacLennan said: “This is a sad loss for the construction and building industry.

“Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available. Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant.

“A team of 16 staff will be retained to assist with the closure process and realisation of the business’ assets. Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”

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