Blair Nimmo and Alistair McAlinden from Interpath Advisory were appointed as joint provisional liquidators of IPC on January 7 by the company’s sole director.

Based in Carluke, Iain Potter Construction was incorporated in 2014 and provided a range of construction services to the health, education, housing, custodial and public sectors, together with a diverse range of private commercial and industrial clients.

Due to rising labour and raw material costs, coupled with increasing overheads and certain contractual difficulties, the company found itself in a severely constrained cash flow position.

The firm anticipated an increased workload after securing a six-figure CBILS loan from Bank of Scotland in May 2020 to help it stave off the impact of the coronavirus pandemic.

Despite this and other actions being taken by the director to improve the company’s financial position, sufficient new funds could not be secured, nor costs sufficiently reduced. Accordingly, the director sought professional advice and, ultimately, the appointment of provisional liquidators.

With no available funding, the company ceased trading immediately. The joint provisional liquidators said they regrettably had no option but to make all of the company’s 33 staff redundant upon appointment.

Blair Nimmo, chief executive of Interpath Advisory and joint provisional liquidator, said: “The collapse of IPC is another worrying sign of the challenges presently facing the Scottish construction sector and, particularly, subcontractors. IPC was a well-known contractor and its insolvency will, unfortunately, not be the last we will see in the early months of 2022.”

Alistair McAlinden, managing director of Interpath Advisory Scotland and joint provisional liquidator, added “Our immediate priority will be to assist employees with their claims to the Redundancy Payments Office, as well as safeguarding the Company’s assets and liaising with IPC’s customers.”