Established in 1981, McGill & Co provided services to clients in the residential, commercial and industrial sectors from its headquarters in Dundee and ancillary offices in Glasgow and Edinburgh.

Joint administrators Blair Nimmo and Geoff Jacobs of KPMG LLP said the company has suffered from challenging trading conditions in the construction sector in recent years and has encountered disputes and delays in payment for a number of significant projects.

Reduced margins, combined with contract and payment delays and a downturn in billable work during the winter months, left the company with a significant funding shortfall.

Following an assessment of the immediate funding requirement, the directors developed a business turnaround plan and approached a number of parties to attempt to secure additional funding. Ultimately, as McGill & Co was unable to secure the funding it required, its only option was to be placed into administration to protect the creditors’ position as best as possible.

Upon appointment, the joint administrators made 374 of the company’s 429 employees redundant with immediate effect.

The 55 remaining employees have been retained to assist the joint administrators to realise the company’s assets, including four freehold properties, numerous contracts, an extensive order book and construction equipment. Mr Nimmo and Mr Jacobs are exploring whether an early sale of some of the business and assets can be secured.

Blair Nimmo, global head of restructuring for KPMG and joint administrator, said: “McGill & Co Limited is a well-known, long established business and provides a significant source of employment, particularly in Dundee both directly and through the supply chain.

“Disappointingly, market conditions and contract related disputes have required the business to cease trading. We will do everything we can to seek a buyer who may be able to protect some of the business and maximise recoveries for creditors.”

Business minister Jamie Hepburn said the government will offer its full support to the workforce.

He added: “I was very disappointed to learn about the situation at McGill & Co in Dundee and at its operations in Glasgow and Edinburgh.

“Scottish Enterprise engaged closely with the company in recent months and has worked with it to try and find a solution to its difficulties. 

“I had spoken with McGill’s managing director and offered the full support of the Scottish Government and Scottish Enterprise. Unfortunately, McGill’s trading situation changed rapidly which meant a positive outcome solution for the company was not possible.

“I am seeking a call with the administrators, KPMG, at the earliest opportunity.

“Our Partnership Action for Continuing Employment (PACE) team has been alerted and stands ready to offer its full support to the workforce.

“A PACE event will be held in Dundee for affected staff on Thursday 7 February.”