Jobs: Construction firm in administration
A construction firm in East Kilbride has gone into administration with the loss of 125 jobs.
Kilwuddie Construction Ltd, a civil engineering and groundworks company based in Nerston, initally axed 175 jobs over the last 12 months in a bid to keep the business afloat.
But the Nerston-based company blamed the recession, particularly the impact on the construction industry, for the loss of the entire workforce.
A spokesman for administrators PKF said the company was owed "considerable" debt from other firms which it had been unable to gain.
Bryan Jackson, of accountants and business advisors PKF, said: "Kilwuddie Construction Ltd has been a successful company over a considerable period but has recently been hit by a number of factors relating to the recession which has had an enormous impact on the construction sector as a whole and specifically on this business.
"The firm has considerable sums outstanding but has been unable to make several debtors pay despite winning adjudications and settlements. In addition margins have been squeezed considerably over the last year to 18 months.
"This has already resulted in the number of employees being cut from 300 to 125 over the last 12 months and regrettably I have to make redundant the remaining employees as part of this administration. Whilst the company has insufficient funds to immediately complete all contracts all efforts will be made to preserve the value of the outstanding work."
Mr Jackson said the administrators had been involved in numerous meetings with various construction firms facing similar difficulties.
He said: "They are all struggling to continue to operate in these extremely difficult times for the industry."
