ALL jobs have been lost at a Glasgow-based electrical company after it collapsed into liquidation.
BGL Contracts Limited ceased trading and fell into the hands of administrators, citing “insurmountable challenges,” resulting in the loss of 40 jobs, according to The Herald.
BGL Contracts Limited had specialised in sub-contract work and provided electrical fit-out to clients across several sectors, including leisure, hospitality, automotive and retail.
Alistair McAlinden and Geoff Jacobs, of Interpath, have been appointed joint administrators of the firm.
Administrators noted that the business had operated in a “highly competitive market,” adding that in recent months the company had struggled to “overcome financial challenges amidst rising costs, low contract margins and the rephasing of some major contracts”.
They added that businesses like BGL Contracts Limited are being “squeezed” by rising costs and “unforgiving” contracts which are leaving them “vulnerable” to insolvency.
“Despite extensive efforts from the directors to secure fresh investment, the business could not meet its financial obligations as they fell due, which led to the appointment of the joint administrators,” the administrators said.
“Following the appointment, the business ceased to trade and, regrettably, all 40 employees were made redundant.”
McAlinden, managing director at Interpath and joint administrator, added: “The dynamics in electrical subcontracting are testing contractors to the limit.
“Businesses like BGL are being squeezed by rising costs and unforgiving contracts which have left them highly vulnerable to insolvency.
“Unfortunately for BGL, these challenges proved insurmountable and without significant investment, the business was unfortunately unable to continue. Our immediate priority is to support impacted employees in submitting their claims to the Redundancy Payments Service.”
Any parties with an interest in the business or assets of BGL have been urged to contact the joint administrators.
It comes after a family-run haulage and freight firm in West Lothian plunged into administration, with jobs placed at risk.
JKM Transport Solutions Ltd, based in Armadale, appointed administrators on June 29.
The news was published in the Edinburgh Gazette on Friday, with Companies House data also confirming the business has filed for insolvency.
George Lafferty, of BTG Begbies Traynor (Central) LLP, was named as the liquidator overseeing the company.
