Midlothian construction firm Crummock collapses in jobs blow

The Donaldson's school residential development in Edinburgh was one of the landmark jobs Crummock was involved with

Employees at the civil engineering company, which is based in Bonnyrigg, were told today that cash flow problems had led to claims from creditors.

Johnston Carmichael has been appointed as receivers and Crummock has officially stopped trading.

The firm announced 287 employees of the business had been made redundant.

A provisional liquidator has separately been appointed to T Graham & Son (Builders), a contractor based in Langholm in Dumfries and Galloway, with the loss of almost 30 jobs.

The firm, founded in 1982, employed 30 staff all of whom have been made redundant with the exception of three staff who have been retained to assist the liquidator.

Crummock had offered a wide range of civil engineering and surfacing construction expertise, including groundworks, infrastructure works and road surfacing.

The firm had been involved with a series of landmark developments in the Lothians, including the Donaldson school residential development in Edinburgh, Fort Kinnaird Retail Park and Shawfair.

Johnston Carmichael restructuring partner Matt Henderson said: “Crummock is a long-established construction business which, like many in the industry, has suffered from reduced margins in recent times.

“In recent months it has also encountered cash flow difficulties due to high retention levels, the tight margins within the sector and business specific issues.

“Unfortunately, the business was unable to raise the capital to enable it to overcome the current financial challenges it faces and we are now dealing with creditors’ claims.”

Midlothian Council’s economic development cabinet member, Councillor Russell Imrie, said: “We’re shocked and saddened to hear a respected and well-established local employer Crummock is to close with the loss of 287 jobs. This is a real blow to the local economy and to the council.

“We’ve had a positive working relationship with the firm for probably three decades now. Indeed, Crummock is one of our framework contractors although there’s no outstanding contracts currently.

“We will be seeking a meeting with Crummock as soon as possible to discuss what support we can give at what is obviously a very distressing time for its workforce and management.

“No amount of words can replace the jobs and put food on the table.”