ANGUS MACDONALD MSP COMMENTS ON GRANGEMOUTH-BASED MASTERTON GOING INTO ADMINISTRATION
Friday, 13 March 2015 09:40
Following the announcement today that Grangemouth-based demolition contractor Masterton has gone into administration Falkirk East MSP Angus MacDonald has called on Falkirk Council to initiate the Partnership Action for Continuing Employment (PACE) team, to assist employees who are seeking alternative employment.
Speaking in Grangemouth following the announcement, Angus MacDonald MSP said:
“My thoughts are with the employees who are faced with redundancy and the families affected. I have called on Falkirk Council to ensure the Partnership Action for Continuing Employment (PACE) team is in place to provide support for the employees, and I will raise the matter with the Depute First Minister John Swinney to seek additional support.
“It is clear the firm has faced a number of challenges in recent months with the final straw being the company’s turnaround proposal rejected by creditors. I understand that 28 staff had been laid off prior to administrators being appointed, with a "small number" being retained to service remaining contracts.”
The Grangemouth-based company, a division of Blackwell Group, had employed 140 people at its peak, though is had been forced to scale back its operations due unprofitable contracts.
In recent years the company had been predominantly focused on industrial dismantling and decommissioning work in the petrochemical and industrial sectors.
PwC said 28 staff had been laid off prior to administrators being appointed, with a "small number" retained to service remaining contracts.
The directors of Masterton were reported to have sought a Company Voluntary Agreement (CVA) with creditors in August of last year in a bid to continue trading.
However, the CVA attempt failed and joint administrators from PwC have now been appointed.
Alan Brown, joint administrator and director at PwC in Scotland, said: “Masterton secured several large contracts in 2012, delivering strong revenue growth.
However, it soon became apparent the contracts weren’t as profitable as first hoped, and despite a strong order book, the firm became reliant on its parent company for support.
“In response, the directors re-evaluated their long term strategy in 2014, seeking to restructure the business through a Company Voluntary Arrangement with support from a boutique turnaround and restructuring firm.
“Despite this course of action, the directors were unable to deliver the anticipated revenue streams needed to maintain and develop the business or meet the terms of the CVA proposal.
“After discussions with the existing lenders, suppliers and customers, the directors have taken the difficult decision to reduce the workforce and place the business into administration.
“Our immediate priority will now be to work with the remaining employees, suppliers and customers to realise the value in the company’s assets and contracts.”