The mechanical and electrical (M&E) division of Richard Irvin & Sons has gone into administration owing £17.4m to its suppliers.
The contractor, based in Aberdeen, announced that it was going into administration in December, with 107 redundancies from its M&E division.
Despite a reported turnover of £45m in 2016, the firm's administrator Ernst & Young said “difficult trading conditions”, including increased political and economic uncertainty, resulted in a decline in business activity and led to the firm owing £17.4m to its suppliers.
As well as M&E, Richard Irvin and Sons also operated a facilities management division, which has been acquired by private investment firm, Rcapital, saving 337 jobs.
The facilities business will now operate as Richard Irvin FM Limited, and has retained public and private sector facilities management clients including Scottish councils, where it provides maintenance and repair services on a 24/7 basis.
According to Mark Buchan, managing director at Richard Irvin FM, the acquisition of the facilities division provides opportunities to use Rcapital’s expertise to allow the business to grow.
Josie Richardson, director at Rcapital, said: “The facilities management division of Richard Irvin is strong and profitable with real potential. We fully support the management team and will work with them to ensure the best possible customer service and sustainable growth.”
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