Reviewed: 4th August 2016
A Scottish engineering business based in Dundee has been entered into administration after fighting to avoid insolvency for the past several years.
Administrators were called in to manage the Galloway Group’s affairs after it succumbed to financial pressures which have seen it struggle to stay afloat while consistently making losses.
A total of 160 employees lost their jobs immediately after the organisation was entered into administration, with only a small number of people retained.
The Galloway Group was first created as long ago as 1872 and has worked primarily as a specialist in the context of ductwork fabrications and acoustic enclosures.
However, the engineering firm has been faced with very weak demand for its core services since 2012 and the recent struggles of operators within Scotland’s oil and gas industry are said to have added further to its financial woes and cash flow concerns.
A statement released on behalf of the group expressed the regret of its directors at having to call in administrators and lay off so many employees.
“This is a very sad day for a long-established Dundee company and our thoughts and best wishes are with the employees and creditors of the business,” the statement said.
“The directors have worked tirelessly, and in good faith, to avoid insolvency through a number of initiatives, including cost cutting, modernising the business offering and raising finance.
“Efforts to raise finance are significantly impaired because of the high debt burden on the business from both previous borrowings and the final salary pension scheme.”
Ernst & Young were appointed administrators of the Galloway Group in recent days.
In addition to its main operating base in Dundee, the business had offices and a team of employees in the town of Dewsbury in West Yorkshire.
Among the projects on which the engineering firm worked in recent years was the development of the Sir Chris Hoy Velodrome, an international cycling arena created in time for the 2014 Commonwealth Games in Glasgow.
The group also contributed to the creation of the Scottish Parliament building in Edinburgh and the British Museum in central London. With 75 offices across the UK, you’re never far away from expert and confidential advice.
14th June 2019
The switching of next year’s early May bank holiday will cost a company that makes calendars in the region of £200,000, according to the business.Read More
12th June 2019
The retailer Sports Direct, along with other relevant parties, has commenced a legal challenge against the terms of a Company Voluntary Arrangement (CVA) designed to rescue the department store operatRead More