A Dundee specialist engineering group has collapsed with the immediate loss of more than 160 jobs.
Shocked Galloway Group workers were informed of their fate after being summoned to a mass meeting at the end of their shifts on Monday.
The group’s demise was blamed on the weak construction market and the downturn in the oil sector.
The firm’s board met on Thursday and the decision to call in administrators was taken at that time.
Andrew Davidson and Hunter Kelly of insolvency practitioner EY’s restructuring team have been appointed as joint administrators of the business.
They confirmed 161 workers had been made redundant with immediate effect. A total of 33 employees will be retained whilst the business is wound down and efforts are made to sell off the DuctMate subsidiary and group assets.
“In recent years the companies have been loss making as a result of weak demand in their traditional construction market,” Mr Davidson said.
“The fall in the oil price and subsequent pressure on the oil and gas sector has also impacted the company.
“The directors have undertaken a number of initiatives to try and counter these setbacks but unfortunately the pressures of the losses generated by these issues became too great and the directors were left with no option but to place the companies into administration.
“The redundancies which we have had to make are clearly regrettable.
“We are doing all that we can to assist these members of staff to make their
relevant claims and are providing them with access to impartial advice to help them face the future.”
Workers were given a matter of minutes to collect their belongings before the premises at Wester Gourdie Industrial Estate were secured for the night.
In a statement, Galloway Group – which can trace its history back more than 140 years – said: “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.
“The board would wish to acknowledge the support of many parties, both in the private and public sector, all of whom have Galloway and its employees’ interests at heart.
“We would especially wish to acknowledge the commitment, skill and hard work of the employees, many of whom have been with the business for a long time.
“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
Workers deserve support
The demise of Galloway Group is both shocking for the local economy and heartbreaking for those affected, writes Graham Huband.
This is no fly-by-night company that we are talking about here – Galloway Group is a genuine part of Dundee’s industrial heritage.
The origins of the company can be traced back to a tinsmith operation in 1872. In the almost 150 years since has weathered many economic storms and provided secure employment to generations of city dwellers.
Galloway is also notable for its commitment to youth, having provided opportunities to hundreds of young apprentices, many of whom went on to serve a lifetime on the shop floor.
That Galloway has reached the end of the road – in its current guise at least – is hugely regrettable and its passing is a scar on the local economy.
But as painful as the loss of the Galloway name is, my thoughts are with the workers right now.
There are mouths to feed and mortgages to pay and the sudden loss of income puts all of that at risk.
Galloway’s loyal staff must be the priority in the coming days.
They must be given every assistance to get back on their feet.