Landscaping firm collapse costs 135 jobs

Image source, TOM Vehicle Rental

A Glasgow-based landscaping and civil engineering firm has collapsed with the loss of 135 jobs.

Administrators EY were called in after Land Engineering (Scotland) Ltd got into financial difficulties.

EY said 249 jobs were saved after it sold part of the company's business and assets to landscape firm Idverde for an undisclosed sum.

However, it added that it had not been possible to find a buyer for the remainder of the business.

Ten Land Engineering staff have been retained to assist the administrators.

Image source, Idverde

Breakdown of Land Engineering job losses/transfers:

鈥 Glasgow head office: 21 staff are transferring to Idverde, 32 are being made redundant and 10 are being retained in the short term

鈥 Registered office in Fenwick, East Ayrshire: Five staff are transferring to Idverde and five are being made redundant

鈥 Edinburgh office: Five are transferring to Idverde and three are being made redundant

鈥 Site offices in Glasgow, East Ayrshire, North Lanarkshire, South Lanarkshire, the Lothians and Fife: 218 staff are transferring to Idverde and 95 are being made redundant

EY reported that Idverde had bought Land Engineering's services, responsive and winter divisions and its interest in contracts at Grangemouth, Craighouse and Quartermile.

It added that Idverde would continue to provide services under those contracts "without any disruption to any of the clients".

'Options explored'

Joint administrator Andrew Davison said an increasingly competitive market had hit Land Engineering's profitability, particularly at its construction arm.

He said: "Various options have been explored by the directors to address these challenges.

"Unfortunately none of these options were ultimately successful and the directors therefore took the decision to appoint administrators to help safeguard elements of the business.

"This has been achieved through the sale we have completed to Idverde.

"While it has been possible to save more than 60% of the total jobs through this sale, it is with regret that redundancies had to be made in relation to the remainder of the company's business.

"We are doing all that we can to assist these members of staff to make their relevant claims and are providing them with access to impartial advice to help them face the future."