An Oban-based construction business has gone into administration with the immediate loss of 20 jobs.
Derek Forsyth and Blair Milne, partners with Campbell Dallas, have been appointed as joint administrators of Neill McGougan Ltd.
Founded in 1986, the family-owned business provided building and construction-related services to a substantial client base across Argyll and Bute and the West Highlands.
The administrators said the collapse was caused by severe cash flow problems stemming from the implementation of the coronavirus restrictions, including the cessation of construction activity on non-essential sites.
The business has ceased trading with immediate effect with the 20 staff having been made redundant.
The joint administrators are now seeking buyers for the assets which include plant, equipment and vehicles.
Derek Forsyth, head of Business Recovery and Insolvency with Campbell Dallas said: “Neil McGougan Limited was a long-established and highly respected local construction firm.
“The directors did everything possible to keep the business trading, however the scale of cash flow problems and the impact of the lockdown left them with no alternative other than to place the business in administration.
“We will now focus on winding up the business and providing as much help as possible for the employees and will be liaising with all relevant agencies such as the Redundancy Payments Office and PACE, on their behalf.”
