Ninety UBC Group workers in the Western Isles have been made redundant today (Friday) as administrators announce the cessation of trade.
The Joint Administrators were appointed on Monday after the Group experienced cash flow problems due to extremely challenging trading conditions. Following appointment, the Joint Administrators and their team conducted an in depth analysis of the Group’s financial position and met with key stakeholders including employees, suppliers and major customers whilst also seeking expressions of interest from third parties for all or parts of the group.
Regrettably, this process made it clear that the Group’s financial position as a whole was unsustainable which has lead to the decision today that trading will cease with immediate effect at the following Group companies: UBC Group; Wyvis Building Services; Mardon Project Services
The requirement to cease trading brings with it 238 redundancies across the following locations:
Inverness – 98 redundancies
Western Isles – 90 redundancies
Bathgate – 45 redundancies
Glasgow Stepps – 5 redundancies
At this present moment, Wyvis Roofing remains unaffected by today’s announcement and the Joint Administrators are hopeful of effecting a sale of this business with the preservation of approximately 30 jobs in Inverness early in the week commencing 14 May 2012.
All employees who have been affected by today’s redundancy notice have been notified in person and all monies owed to date have been paid in full. The Joint Administrators will now be working
closely with the Scottish Government and other agencies to assist former employees of the Group in their quest for new employment. The Joint Administrators have also received a small number of enquiries from third party construction and related businesses seeking to assist former Group employees and will be processing these requests in the coming days.
Elizabeth Mackay, Joint Administrator and Lead Partner for Zolfo Cooper in Scotland said: “It was with great regret that we have had to take today’s extremely difficult decision. We are fully aware of the impact that these redundancies have on the communities in which UBC Group operated for many years and my team and I will be working with all relevant agencies and third parties to seek to minimise the impact as much as possible. Unfortunately, the Group’s overall financial position had become untenable and a lack of outside interest in acquiring the business as a going concern meant that today’s decision was the only remaining course of action available. I would like to thank all Group employees for their professionalism and dedication during this unsettling period and wish them luck for the future”.
Elizabeth Mackay added the following statement with regard to Wyvis Roofing: “We remain hopeful that we are close to effecting a sale of Wyvis Roofing and expect to conclude this early next week. This will allow for the preservation of some 30 jobs in the Inverness area and allow the business to continue to serve its existing contracts.”
The company had been working on the site of a new housing development in Stornoway and also on the construction of the new Harris House care home.