MSP’s Regret as Local Construction Firm Placed in Receivership
Tuesday, 19 June 2012 08:49
Construction sector downturn blamed for demise of 26-year-old company
Falkirk East MSP Angus MacDonald has expressed his regret at the news that Grangemouth-based construction firm Carronvale Homes Ltd has been placed into receivership, making 15 staff redundant, with six retained to assist the receivers.
Speaking in Grangemouth following the announcement, Angus MacDonald MSP said:
“I am extremely sorry to hear that Carronvale Homes has gone into receivership after 26 years of successful trading. Carronvale had a reputation for building top quality housing for both the private and social housing sectors. Sadly, the firm’s difficulties are a symptom of the double dip recession we find ourselves in, however the Scottish Government is actively seeking ways to boost the Scottish construction industry by looking at innovative ways to build over 5,000 affordable homes each year for the next five years.
With the UK Government cutting the Scottish Government’s capital budget by £800 million last year we must find new ways of funding the building of social housing, and plans are already well advanced to fund the building of affordable homes through pension funds and other innovative methods.”
Carronvale Homes employed 21 staff, 15 of whom have been made redundant, with six retained to assist the joint receivers.
Carronvale Building Company Ltd, a related company also headquartered at Wood Street in Grangemouth, continues to trade free from insolvency proceedings.
The builder has two partially complete developments in Bathgate and Grangemouth, and also owns development sites in Tullibody, Clackmannan, Cambuslang, Larbert and Standburn.
In total, Carronvale has planning consents for 256 residential homes and applications for a further 53 pending.
The company also has a short-term let apartment in Edinburgh city centre.
Blair Nimmo, joint receiver and head of restructuring for KPMG in Scotland, said: “Carronvale Homes Limited enjoyed an excellent reputation as a builder of quality residential property, having been a part of the Scottish construction industry for more than 25 years.
“The widely-publicised slowdown in the Scottish residential property market and the resulting contraction of the construction sector have, unfortunately and despite the efforts of the management team, led to the regrettable decision to cease trading with the loss of 15 jobs.”