All 23 members of staff have been made redundant as the Scottish housebuilder J S Crawford Contracts (Borders) Ltd goes into liquidation
J S Crawford Contracts (Borders) Limited has ceased to trade with immediate effect, as the firm goes into liquidation.
Based in Melrose and founded in 1946, the company said its demise was due to a problem with contract and construction inflation.
Blair Nimmo and Alistair McAlinden from Interpath Advisory have been appointed joint provisional liquidators to the firm.
Director Michael Crawford said on the liquidation:
“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 West Grove 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.”
The West Grove project is a multiple-storey retirement complex built on the site of a former church. Originally due to be completed in 2022, the project has backing from the Bank of Scotland and is being developed by JS Crawford’s parent company Rural Renaissance(which is also owned by Michael Crawford).
“Cost inflation, tight margins and labour shortages” impacting the industry
Alistair McAlinden, head of Interpath Advisory in Scotland and joint provisional liquidator, said: “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.”
