More than 500 jobs lost as civil engineer Dunne collapses

Hundreds of construction workers have been laid off with immediate effect following the collapse of Scottish civil engineering firm Dunne.

Dunne Group suffered 'substantial' losses on some contracts, administrators said. Picture: Contributed
Dunne Group suffered 'substantial' losses on some contracts, administrators said. Picture: Contributed

Administrators have been appointed at The Dunne Group Limited and its five subsidiaries and business has ceased trading – resulting in the immediate loss of 524 of the 540 jobs employed across the group.

Founded in 2001 and headquartered in Bathgate, Dunne also operated from sites in Glasgow, Dublin, Leeds and London, providing civil engineering, building, construction, infrastructure, contracting and plant hire services.

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The business had grown rapidly in recent years with major contract wins including three high-profile projects in London – Newington Butts, 100 Bishopsgate and One Blackfriars.

Turnover last year was £74 million and it was forecast to reach £96m this year.

Tom MacLennan, partner at FRP Advisory and joint administrator, said: “This is a sad loss for the construction and building industry.

“The business faced substantial trading losses on some contracts, leading to severe cash flow pressures. Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.

“Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant.

“A team of 16 staff will be retained to assist with the closure process and realisation of the business assets.

“Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”

The Dunne Group owns a substantial portfolio of specialist equipment and assets including cranes, trucks, lifting equipment, excavators and access platforms.

These items will be valued and marketed for sale in due course, administrators said.