Civil engineering contractor Dunne Group has gone into administration and ceased trading with the immediate loss of 524 jobs.
Dunne was founded in 2001 and has offices in Glasgow, Leeds, Dublin and London. It worked in of civil engineering, construction, contracting and plant hire. Big projects it had recently worked on include Newington Butts and One Blackfriars.
Administrators have been called in even though turnover last year was £74m and forecast this year at £96m. Its subsidiaries are Dunne Building and Civil Engineering, Dunne Developments, CLR Plant Hire, Dunne Concrete Flooring and Conforce.
Of the job losses, 311 are in London, 200 are in Scotland and 13 are in Leeds.
FRP Advisory partner and joint administrator Tom MacLennan said: “The business faced substantial trading losses on some contracts, leading to severe cash flow pressures. Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.
“Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant. A team of 16 staff will be retained to assist with the closure process and realisation of the business’ assets. Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”
The Dunne Group owns a large portfolio of specialist equipment and assets such as cranes, lifting equipment, excavators and access platforms and these items will be sold.