Hundreds of jobs lost as construction firm collapses
Around 450 jobs will be lost at the company, which has been based in Dundee more than 30 years.
Hundreds of jobs in Scotland are to be lost after construction company McGill was forced into administration.
Workers were called to meetings in Dundee, Edinburgh and Glasgow on Friday afternoon.
About 350 jobs have been cut immediately at the company, and another 50 have been retained to help the firm wind down.
STV News understands all contract work will be halted as administrators take charge.
The company said a winter slowdown was made worse by customers who refused to pay their bills on time, and that while it searched for funding to reorganise its business it couldn't secure it in time.
The firm has been based in Dundee for more than 30 years and carries out work on commercial, residential, healthcare and education projects.
It's the latest blow for the city after the announced planned closure of the Michelin tyre factory, which is set to see more than 850 jobs go.
George Ramsay, Dundee Official with Unite the Union said: "Again we see a blow to Dundee workers. No consultation and being asked to come to a meeting and the doors are closed. It is absolutely shocking.
"It doesn't look very good for the company. It seems to be the end. I don't know where these workers will get other work in Dundee in the building trade. There is basically very few builders left here.
'They are very angry. Being called into a meeting on a Friday afternoon and being told you are out of work is an angry thing'George Ramsay, Dundee Official with Unite the Union
"They are very angry. Being called into a meeting on a Friday afternoon and being told you are out of work is an angry thing.
"A lot of these workers will end up working away from home. There is no building firm left in Dundee that can take up the slack."
The Scottish Government said it offered its full support to the firm.
Business minister Jamie Hepburn said: "I was very disappointed to learn about the situation at McGill & Co in Dundee and at its operations in Glasgow and Edinburgh.
"Scottish Enterprise engaged closely with the company in recent months and has worked with it to try and find a solution to its difficulties.
"I had spoken with McGill's managing director and offered the full support of the Scottish Government and Scottish Enterprise.
"Unfortunately, McGill's trading situation changed rapidly which meant a positive outcome solution for the company was not possible.
"I am seeking a call with the administrators, KPMG, at the earliest opportunity."
Full statement from administrators KMPG
Blair Nimmo and Geoff Jacobs of KPMG LLP were appointed as Joint Administrators of McGill & Co Limited (the Company) on Friday, February 1.
McGill & Co was established in 1981 as a specialist building contractor. The company provides services to clients in the residential, commercial and industrial sectors from its headquarters in Dundee and ancillary offices in Glasgow and Edinburgh.
The company trades through five divisions; mechanical & electrical services, facilities management; social housing; private residential; fibre & wireless.
In recent years, McGill & Co has suffered from challenging trading conditions in the construction sector and has encountered disputes and delays in payment for a number of significant projects. Reduced margins, combined with contract and payment delays and a downturn in billable work during the winter months, left the company with a significant funding shortfall.
Following an assessment of the immediate funding requirement, the directors developed a business turnaround plan and approached a number of parties to attempt to secure additional funding. Ultimately, as McGill & Co was unable to secure the funding it required, its only option was to be placed into administration to protect the creditors' position as best as possible.
'We will do everything we can to seek a buyer who may be able to protect some of the business and maximise recoveries for creditors'Blair Nimmo
Upon appointment, the Joint Administrators had no other option than to make 374 of the company's 429 employees redundant with immediate effect.
The 55 remaining employees have been retained to assist the Joint Administrators to realise the company's assets, including four freehold properties, numerous contracts, an extensive order book and construction equipment. Joint Administrators are rapidly exploring whether an early sale of some of the business and assets can be secured.
Blair Nimmo, global head of restructuring for KPMG and joint administrator, said: "McGill & Co Limited is a well-known, long established business and provides a significant source of employment, particularly in Dundee both directly and through the supply chain.
"Disappointingly, market conditions and contract related disputes have required the business to cease trading. We will do everything we can to seek a buyer who may be able to protect some of the business and maximise recoveries for creditors."
"We would encourage any party who has an interest in acquiring any part of the business and its assets to contact us as soon as possible."
"We will be working with employees and have already initiated matters with relevant government agencies to ensure the full range of support is available to all those affected."