Almost 200 jobs have been lost after a Glasgow construction company collapsed into liquidation.
Provisional liquidator KPMG confirmed 175 jobs will go following the closure of Donaghy.
The company – which worked on construction and civil engineering contracts mainly in the housebuilding sector – suffered from “severe cashflow pressures”.
Blair Nimmo and Tony Friar – who were appointed joint liquidators for the company – confirmed 10 staff will be kept on to maintain the company’s assets, which include plant and hire equipment.
Nimmo said: “Despite Donaghy’s strong reputation in the Scottish construction sector, the business has unfortunately experienced an extremely challenging trading period in recent months and throughout last year, largely due to the well-publicised downturn in the construction sector.
“The business was experiencing declining margins as tenders became increasingly competitive, ultimately leading to severe cashflow pressures.”
“Regrettably, we had no option but to close the business and to make most of the employees redundant.
“We will now be working with the relevant government authorities to ensure staff can claim outstanding sums due to them.”
The company – which was formed in 1999 – had been working on more than 30 sites across central Scotland at the time of going into liquidation.
According to its latest accounts filed until February 2011, Donaghy’s had a gross turnover of £12,232,533 and made a gross profit of £1,386,073.
At its peak, the business operated with an annual turnover of around £18m.
By Andy Pearce
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