Kirkcaldy firm Havelock International has gone into administration, with the loss of 247 jobs.
Staff at the interior fit-out specialist told The Courier of their shock after press reports confirmed the decision prior to a company meeting at 10am today.
Employee Bill Dickson said: “I am absolutely gobsmacked. It’s ridiculous. We were always hoping that there was going to be some miracle, but workers were told to come in at 10 o’clock and it’s all over the papers, so it’s just inevitable what’s going to happen.”
David Baxendale and Zelf Hussain of accountancy firm PricewaterhouseCoopers have been appointed joint administrators of the Fife firm, which specialises in fitting out premises such as shops and offices.
The administrators concluded that it was not possible to continue to operate the business while a buyer was sought, and 247 employees, the vast bulk of the workforce, have been made redundant.
The long-established Havelock Europa business, which was listed on the stock market for decades, was reborn as Havelock International after being bought out of administration last summer.
Last year’s deal had at that stage saved the jobs of a 300-plus workforce engaged in design, manufacture and installation.
Mr Baxendale said: “The company has faced a challenging trading environment for some time, and the directors have concluded that there is no longer any reasonable prospect for the company to continue to trade.
“Prior to our appointment, we explored ways that the business might continue to operate whilst a buyer was sought. However, regrettably this has not proved possible and it has therefore been necessary to make 247 employees redundant with immediate effect.”
“Our priority is to ensure that all employees are assisted in processing their redundancy claims as a priority.
“We will be in further contact with all staff as soon as possible and will outline the support available to complete redundancy payment forms.
“Advice and assistance will also be available from JobCentre Plus and PACE (Partnership Action for Continuing Employment).”
PwC said that a small number of employees had been retained to assist the joint administrators in “managing the activities of the business to an orderly closure and maximising realisations for the company’s creditors”.
It added that the administrators would work with employees, clients and suppliers to “facilitate a smooth and effective wind-down”.
Responding to the news GMB Scotland organiser Allison Cairns said: “The anger of workers at today’s announcement from Havelock is entirely justified.
“There are serious questions to be answered as to how the company was allowed to get to this point without the workforce being warned or consulted.
“The fact that redundancies were pre-briefed as an “exclusive” to a national newspaper before the workforce were informed is a disgrace and a grave error by the administrator, PriceWaterhouseCooper.
“The plain fact is that this factory does not need to close. There is a quality product here for a buyer willing to make this business work.”
She added: “The consequences if a suitable buyer cannot be found will be simply dire for Fife, for what remains of Scottish manufacturing and worst of all for the 250 people employed here, some of whom will have worked here for a lifetime, all of whom are now faced with being left with nothing.
“GMB Scotland will do everything in our power to support and assist our members at this time.”
