No pay for RMJM staff as problems build up

TROUBLED Edinburgh-based architecture firm RMJM has admitted to further problems with the late payment of salaries to staff at its flagship Hong Kong office.

The company was unable to pay wages to any workers in March even though an 8 million bail-out of the firm was unveiled last month.

At the time sources close to the firm claimed the cash injection from the Morrison family, which controls the company, would not be enough to pay the firm's debts.

Gordon Hood, managing principal of the Hong Kong office, told staff: "I had hoped that my first e-mail to the studio would contain more positive news, and that, after the month of change and disruption that we have just experienced, management would be able to ensure that March salaries would be paid to all staff on time.

"However, despite a full-time effort, we've not been able to secure sufficient funds from our clients to allow us to do so."

However, the firm has insisted the revamping of the company's finances is still ongoing.

A spokesman for RMJM said: "We are now in the very final stages of refinancing and expect to confirm its completion shortly.

"The refinancing will provide significant additional financial flexibility, however the financial pressure on the group remains."