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Glasgow contractor Donaghy enters liquidation as 175 jobs go

Scottish groundwork contractor Donaghy Ltd, supplier to companies including Kier, Taylor Wimpey and Persimmon has entered provisional liquidation with the loss of 175 jobs.

Blair Nimmo and Tony Friar of KPMG LLP have been appointed as joint provisional liquidators of the Glasgow-based construction company.

The contractor was established in 1999 and has its headquarters in Govan, Glasgow. Its core business involved groundwork, construction and civil engineering contracts, primarily for the housebuilding sector.

It is currently employed on more than 30 construction sites, mainly across central Scotland and had a turnover of £18m at its peak.

A total of 175 staff have been made redundant – of which 165 being site-based – with the remaining ten staff assisting the provisional liquidators to safeguard the company’s assets which are mainly plant and hire equipment and debtors.

Joint provisional liquidator and head of restructuring for KPMG in Scotland, Blair Nimmo said: “Despite Donaghy’s strong reputation in the Scottish construction sector, the business has unfortunately experienced an extremely challenging trading period in recent months and throughout last year, largely due to the well-publicised downturn in the construction sector.

“The business was experiencing declining margins as tenders became increasingly competitive, ultimately leading to severe cashflow pressures.

“Regrettably, we had no option but to close the business and to make most of the employees redundant. We will now be working with the relevant Government authorities to ensure staff can claim outstanding sums due to them.”

The Provisional Liquidators will now be working with Donaghy’s customers to ensure remaining contracts are either completed or transferred to third parties.

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