M&E contractor goes down owing £17.4m to suppliers

Scottish M&E contractor Richard Irvin & Sons has gone into administration owing £17.4m to suppliers.

The trade debt was revealed by administrator Ernst & Young who took control of the Aberdeen based firm late last month.

The £45m turnover company has been in business since 1907 and operated two divisions – mechanical and electrical and facilities management.

The M&E side was hit by contracts coming to an end and late payment while Irvin’s bankers refused to extend its overdraft.

All 109 staff at the M&E division have lost their jobs but 337 jobs have been saved at the FM business which was sold for £1.1m in a pre-pack deal to private investment firm Rcapital Partners.

Josie Richardson, Director at Rcapital said: “The facilities management division of Richard Irvin is strong and profitable with real potential.

“We fully support the management team and will work with them to ensure the best possible customer service and sustainable growth.”

The new business will be called Richard Irvin FM Limited.

from Construction Enquirer http://www.constructionenquirer.com/2019/01/03/me-contractor-goes-down-owing-17-4m-to-suppliers/

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