SPECIALIST building contractor McGill & Co has gone into administration, with 374 of the company’s 429 employees losing their jobs.

Blair Nimmo and Geoff Jacobs of KPMG were appointed as joint administrators yesterday.

The 55 remaining employees have been retained to assist the joint administrators to realise the company’s assets, including four freehold properties, contracts, an order book and construction equipment. Joint administrators are exploring whether an early sale of some of the business and assets can be secured.

In recent years, McGill & Co has suffered from challenging trading conditions in the construction sector and has encountered disputes and delays in payment for several projects. Reduced margins, combined with contract and payment delays and a downturn in billable work during the winter months, left the company with a significant funding shortfall.

Business Minister Jamie Hepburn said a Partnership Action for Continuing Employment (Pace) event will be held in Dundee for affected staff on February 7.

He added: “I was very disappointed to learn about the situation at McGill & Co in Dundee and at its operations in Glasgow and Edinburgh.

“Scottish Enterprise engaged closely with the company in recent months and has worked with it to try and find a solution to its difficulties.

“I had spoken with McGill’s managing director and offered the full support of the Scottish Government and Scottish Enterprise. Unfortunately, McGill’s trading situation changed rapidly which meant a positive outcome solution for the company was not possible.

“I am seeking a call with the administrators, KPMG, at the earliest opportunity. Our Pace team has been alerted and stands ready to offer its full support to the workforce.”

Nimmo said: “McGill & Co Limited is a well-known, long established business and provides a significant source of employment, particularly in Dundee both directly and through the supply chain.

“Disappointingly, market conditions and contract related disputes have required the business to cease trading.”