23 jobs lost as Melrose construction firm stops trading
Last updated 12th Feb 2024
It's been confirmed 23 jobs have been lost in the Borders after a family-owned construction business called in the liquidators.
J S Crawford (Contracts), based in Melrose, blames delays in the completion of its Westgrove development - in the town's Waverley Road - and "rampant... inflation", for the move after more than 50 years of trading.
Blair Nimmo and Alistair McAlinden from Interpath Advisory were appointed joint provisional liquidators on Wednesday.
The company's director, Michael Crawford, said: “It was with great sadness and regret that after 50 years of trading, J.S. Crawford (Contracts) Borders has ceased trading, with the loss of 23 jobs.
"It is something I had been desperately trying to avoid, and had hoped that the Company could trade out, but unfortunately, the necessary backing from suppliers and funders was not there.
“The failure of my business is due in the main to the delay in completion of the Westgrove project. Over the past year additional and unsustainable interest charges combined with rampant cost inflation has resulted in a significant loss on the project.
"The shareholder had been supporting the business, but these efforts were ultimately in vain, and so the only option remaining was to liquidate the company.”
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Founded in 1946, the company - which specialises in residential house building - recently experienced what is being described as "significant financial pressures arising from challenges on a construction contract".
After exploring the options available to them, the directors made the difficult decision to seek the appointment of Joint Provisional Liquidators.
"Given the financial position of the Company, the business has ceased to trade and regrettably, all 23 members of staff have been made redundant," a statement released to Greatest Hits Radio reports
"The Joint Provisional Liquidators’ immediate priority is on ensuring the impacted employees are given full support to submit redundancy claims to the relevant Government department."
Alistair McAlinden, head of Interpath Advisory in Scotland and joint provisional liquidator, added: “It is sad to see this well-established, family-owned business enter into liquidation. Persistent strong headwinds, including cost inflation, tight margins and labour shortages, are continuing to impact companies across the housebuilding and wider construction industry and unfortunately, in the case of J S Crawford, they were too difficult to overcome.
“The directors had worked hard to explore other options but unfortunately, had no option but to place the Company into provisional liquidation. We will endeavour to provide any and all support to those workers impacted by redundancy during this difficult time.”
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