Iain Potter Construction (IPC) was placed into administration on 7 January by the company’s sole director.
Based in Carluke, South Lanarkshire, it was incorporated in 2014 and provided a range of construction services to the health, education, housing, custodial and public sectors, together with private commercial and industrial clients.
Due to rising labour and raw material costs, coupled with increasing overheads and certain contractual difficulties, the company found itself in a severely constrained cash flow position.
Despite actions being taken by the director to improve the financial position, sufficient new funds could not be secured, nor costs sufficiently reduced. Accordingly, the director sought professional advice and, ultimately, the appointment of provisional liquidators.
With no available funding, IPC ceased trading immediately, with all 33 staff made redundant upon appointment of liquidators.
Blair Nimmo, chief executive of Interpath Advisory and joint provisional liquidator, said: “The collapse of IPC is another worrying sign of the challenges presently facing the Scottish construction sector and, particularly, subcontractors.
“IPC was a well-known contractor and its insolvency will, unfortunately, not be the last we will see in the early months of 2022.”
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