Contractor Dunne Group, which was assigned to a number of significant projects, went into administration earlier this week with the loss of 524 jobs.
Tom MacLennan of FRP Advisory was appointed joint administrator on Tuesday. He said the group, which until then had been owned and run by its founder, Gordon Dunne, had overextended itself.
“The business faced substantial trading losses on some contracts, leading to severe cash flow pressures … Rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.
The group is understood to have bid aggressively for big, long-term contracts following the financial crisis, and since then it has struggled to keep costs sufficiently low to remain profitable.
The Scottish company was founded in 2001, operated sites in Glasgow, Leeds, Dublin and London, providing a range of civil engineering, building, construction, infrastructure, contracting and plant hire services.
It was contracted, or subcontracted to a number of high-profile projects, including 100 Bishopsgate and One Blackfriars in London and Maggie’s Centre near Falkirk.
