Murray & Burrell Limited (SC023978): administration
- Status
- Administration ended
- Administration began
- 2016-11-07
- Incorporated
- 1946-04-01
- Location
- Dunfermline
- Industry
- 41100 Development of building projects
Why it went into administration
- Weak consumer demand
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
- Loss-making contracts / project overruns
- Property / lease costs
From the administrators' statement
The company was incorporated in April 1946 although the business had originally commenced trading in 1928 in Galashiels. The company was a family business which traded successfully for many years, specialising in building high end properties and was a major employer in the area.
As well as building properties they also carried out contracting along with jobbing works, which consisted of repairs and maintenance for clients. The directors advised that the contracting side of the business had seen diminishing profitability in recent years and this, coupled with reduced demand for new builds, had led to cash flow issues.
Following discussions with the company’s previous bankers, it was concluded that the company would have to seek to re-finance and the company entered an agreement with a new lender and granted standard securities over three areas of land to Assetz Capital Limited, securing £950,000 of funding of which £650,000 had been drawn down. The loan agreement included certain conditions regarding timings to build out on the land in order to repay the funds. However, the company was unable to comply with the terms of the agreement due to cash flow issues which prevented it being able to build out properties at the rate required.
Administrators' statement of proposals (2017-01-19) · Companies House register