ICSM Business News: hundreds of jobs go and contractors left high and dry as Scottish construction firm goes bust just days into the New Year
By Harry Mottram: With only days of 2024 gone the construction industry has seen one of Scotland’s largest construction companies go bust. Based in the north east of Scotland builder Stewart Milne has blamed their demise on challenges since Covid. The collapse into administration was reported by the BBC. They reported: “It comes after an attempt to sell the company by its chairman Stewart Milne fell through last year. Administrator Teneo said 217 jobs would be affected, with hundreds of other sub-contractor roles also expected to be impacted. Six of the company's subsidiaries have also been placed into administration, but its north-west England arm has not.”
The firm began in the mid 1970s by electrician Stewart Milne who was also at one time the chairman of Aberdeen Football Club. The BBC reported that Mr Milne, 73, said: "I am devastated by this totally unexpected outcome of the sale process and struggling to accept it, given the profound impact it will have on employees, sub-contractors, suppliers and customers. Stewart Milne Group was up for sale and, following significant interest, two bids were submitted. The bank has not accepted either bid and withdrawn its funding. I tried everything I could to find a way to achieve a better outcome for the business and the people who depend on it. I believe one of the bids could have delivered a comparable, financial return to administration and, crucially, allowed the business to continue to operate, safe-guarding hundreds of jobs and protecting livelihoods."
ICSM’s Ian Carrotte said it was very concerning that scores of contractors may not be paid including a host of self-employed tradesmen. He said: “ICSM understands that the administrator Teneo was looking at options to complete unfinished projects with other firms and contractors. This is not on the scale of Carillion but it has thrown up the same issues of unpaid invoices, out of work staff and half finished building sites. It does not bode well for the New Year – we always advise those taking on work for construction companies to stick to their credit terms and if a firm fails to pay on time it is often a bad sign – and it is prudent to put companies on stop at that point.”
Daniel Gayne of Building wrote on the trade publication’s website: “The Aberdeen-based company was put up for sale in April 2022 but it put the process on pause eight months later citing “uncertainty in the market” after Liz Truss’ mini-budget. It re-started the sale process last August after recording a pre-tax profit of £16.5m on reduced turnover in the year to October 2022, partly due to the sale of its timber frame business.”
And https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-67918029
The firm have posted these important notices on its website:
Notice of appointment of Administrators
On 8 January 2024 Adele Macleod, Gavin Park and Matt Smith (“the Administrators”) of Teneo were appointed as administrators of Stewart Milne Group Limited and Stewart Milne Homes North West England Limited.
Furthermore, Adele Macleod and Matt Smith were appointed administrators in respect of five other entities within the wider Stewart Milne group:
Stewart Milne Homes Central Scotland Limited, Stewart Milne Central Scotland (Developments) Limited, Stewart Milne (Arbroath) Limited, Stewart Milne Homes (Auchterarder) Limited and Stewart Milne Homes (Kirkton) Limited.
Collectively, these seven entities are “the Companies”.
The affairs, business and property of the Companies are managed by the Administrators. The Administrators act as agents of the Companies and contract without personal liability.
The Companies ceased trading with immediate effect on 8 January 2024. No further construction is being completed, at this time, by the Companies as a result of the administrations.
The Administrators will shortly be contacting all known customers with reservations, creditors, suppliers, subcontractors and hired plant/equipment providers.
Please refer to the below points of contact for any specific queries.
Customers
If you have reserved a Stewart Milne property and have not yet moved in we will be contacting you directly. However, should you have an immediate query please contact SMReserved@teneo.com.
If you currently live in a Stewart Milne property and have a query with regards outstanding works, please contact SMHomeowners@teneo.com for further information.
Creditors
All sums due by the Companies, prior to 8 January 2024, will rank as an unsecured claim in the administration of the relevant company. All known creditors will be contacted providing details of how to submit a claim.
All other creditor queries should be submitted to SMGeneral@teneo.com.
Suppliers
If you are a supplier, please note that no further orders should be fulfilled, and delivery to the sites should not be attempted, unless otherwise advised by the Administrators.
If you have outstanding invoices, please note that a claim will need to be submitted to the Administrators. As noted above, all known creditors will be contacted providing details of how to submit a claim.
All other supplier queries should be submitted to SMSuppliers@teneo.com.
Subcontractors
Due to the cessation of trade, no further work should be undertaken by subcontractors. Please note, site access should not be attempted unless otherwise approved by the Administrators.
If you are a subcontractor and require site access to collect your equipment, please contact SMsubcontractors@teneo.com.
As noted above, all known creditors will be contacted providing details of how to submit a claim.
All other supplier queries should be submitted to SMsubcontractors@teneo.com.
Equipment providers
Other than by exception, it is not expected that the Companies will require ongoing usage of hired plant/equipment. Please contact SMSuppliers@teneo.com to arrange collection of your equipment.
Please note, site access should not be attempted until approved by the Administrators.
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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com
