EAST Kilbride double-glazing supplier TFD (Scotland) has appointed a provisional liquidator after tough trading conditions in the housebuilding sector and the loss of a major contract wiped out its cash reserves.
The 13-year-old company, which supplied double-glazing windows to trade and housebuilder clients only, ceased trading on Thursday, with 63 jobs lost.
The appointment of a provisional liquidator means the company’s assets can be protected while an application is made to the courts to wind the business up.
Johnston Carmichael restructuring partner Donald McNaught, who has been appointed provisional liquidator, said he is now seeking buyers for those assets.
“Unfortunately the business has been unable to ensure sufficient cashflow to remain viable, despite repeated efforts by the directors to improve its position and protect jobs,” he said.
“We are now actively seeking buyers interested in the company’s remaining stock, premises, plant and equipment.”
McNaught said that TFD had been impacted by difficulties in the wider construction sector and in particular the insolvency of major client Muirfield Contracts in March 2015.
Dundee-based construction company Muirfield went into administration after experiencing what its joint administrator Derek Forsyth said at the time were “unsustainable cashflow problems”.
Although the TFD insolvency means that over 60 jobs have been lost at the company, McNaught is working alongside Partnership Action for Continuing Employment in a bid to help staff secure new positions.
A consortium of 22 organisations including Skills Development Scotland, PACE is a Scottish Government framework set up to respond to redundancy situations.
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