200 Scots jobs at risk as top architect goes into administration

ONE of Britain's leading architecture firms has gone into administration less than two years after it was formed by a merger involving some of Scotland's top design firms.

Half the 400 jobs at risk after the collapse of Archial Architects are Scottish based.

The company was established in January last year following the merger of the established Scottish practices Davis Duncan Architects, Hugh Martin Partnership, Jenkins and Marr Architects and Parr Architects and employs around 200 staff in Scotland, operating from offices in Edinburgh, Glasgow, Aberdeen, Dundee and Inverness.

Archial, headquartered in London, also has 18 other offices dotted throughout the UK and overseas, and its design portfolio has included the 40 million extension to the main terminal at Edinburgh airport, the award-winning Dumfries Dental Centre, Chevron's new headquarters in Aberdeen and Clydebank College.

Last November, the company was awarded the UK's richest architectural prize, run by the Royal Incorporation of Architects in Scotland, for its design of the new 145 million animal hospital in the grounds of Glasgow University's Garscube campus.

But it has now been revealed that the leading architecture company has gone into administration after HM Revenue and Customs rejected a payments deal and business began to slow.

David Chubb and Graham Frost of accountants PricewaterhouseCoopers have been brought in to try and sell the company as a going concern.

Mr Chubb said: "In response to changes in market conditions, Archial Group had taken a number of steps to improve operations and to develop a sustainable and profitable business going forward. However, due to difficulties in meeting the group's financial obligations, the directors have concluded that various companies in the group, including Archial Architects Limited and Alsop Sparch Limited, should be placed into administration to protect the business and assets."

He added: "The joint administrators will be seeking a rapid sale of the business as a going concern to achieve the maximum realisations for the creditors of the group."

A spokesman for PricewaterhouseCoopers said: "The group is an architectural business with public and private sector clients in the commercial, corporate, education, health, leisure, nuclear, residential, retail and transport industries.The group currently employs 400 people in the UK and overseas and is delivering projects throughout the UK, Asia, India, the Middle East, Europe and North America.

"The UK offices include London, Aberdeen, Bedford, Birmingham, Bournemouth, Cambridge, Edinburgh, Exeter, Glasgow, Inverness, Ipswich, Leeds, Newcastle, Manchester, Plymouth and Warwick."

It was also revealed yesterday that the Archial went into administration as the company was about to launch court proceedings against Ian Suttie, one of Scotland's richest business tycoons and head of Aberdeen-based First Oil.

The civil action raised at Aberdeen Sheriff Court by Archial is understood to centre on work done by the company on the site of the former Broadford Works in Aberdeen.

The site of the disused Richards textile plant is due to be redeveloped to create 398 flats and is owned by Mr Suttie's building firm First Construction.