The administrators appointed to Muirfield Contracts have begun a wind-down of operations at the site.

Derek Forsyth and David Hunter of Campbell Dallas LLP were appointed to Muirfield on Thursday 12 March following the suspension of trading operations.

The move followed slowed trading and unsustainable cash flow problems at the company, which was unable to secure additional investment.

Derek Forsyth, Head of Business Recovery and Insolvency at Campbell Dallas, said: "We were not in a position to recommence trading and had no option other than to begin an orderly wind-down of the business. As a result we very much regret that 258 employees have been made redundant and that the company is no longer in a position to offer work to around 110 labour only sub-contractors who had been engaged prior to administration. We have written to all employees affected by redundancy and letters to the labour-only sub-contractors are currently being issued.

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"We are retaining a core staff of 25 to assist with the on-going assessment of the contracts position and to help with the wind-down of the company's affairs. We are fully aware of the impact of the redundancies on the local economy and communities. My team and I will be working with all relevant agencies, the trade union, local politicians and third parties to provide as much support as possible to all employees.

"Unfortunately the business had effectively ceased trading prior to our appointment and its position was untenable and unsustainable. We will now focus on the wind-down process and will look to realise as much value as possible from the contracts and sales of any physical assets such as property, plant and vehicles. We would encourage interested parties to make contact with us as soon as possible."

(IT/JP)