A 40-year old building firm based in Dundee has collapsed, leaving 130 people looking for work.
The firm, WH Brown Construction, went into receivership along with its subsidiary Bronco Timber Products Limited after being unable to continue through the present economic challenges.
The extent of the firm’s debts is presently unclear.
Joint receivers Colin Dempster and Derek Hyslop of Ernst & Young are presently working to establish this, with Hyslop saying:
“Despite the best efforts of the directors, difficult economic conditions have resulted in a situation where the immediate cessation of trading is necessary at both companies.
“Regretfully, this has resulted in the unavoidable loss of approximately 130 jobs.
“We are now focused on establishing the full extent of the company’s debts as we aim to realise its assets on behalf of its creditors.”
It is a situation which a number of companies in Scotland could also be confronted with.
Many others are actually reducing their debt commitments though; choosing to finance their operations with other methods, such as invoice discounting and factoring.
Invoice-based lending has also helped many retain staff.
Meanwhile, staff at WH Brown are being given help by the receivers. Practical help in completing redundancy and benefit claim forms is available, while there is also provision for counselling and retraining advice.
However, Harry Frew from construction union UCATT said:
“This is a kick in the teeth for the local economy which is already struggling.”
Frew hopes that a meeting with the administrators will help establish what further steps can be taken to help its members.