Grangemouth demolition firm goes bust

Demolition specialist Masterton Ltd has gone into administration
Demolition specialist Masterton Ltd has gone into administration

Administrators have been called in to a Grangemouth demolition specialist after a last ditch effort to save the firm failed.

Bosses at Masterton Ltd, in Bo’ness Road, tried to keep the business afloat last year through a company voluntary agreement after sizeable contracts proved less profitable than first hoped.

However, the firm, which had already laid off dozens of its 140-strong workforce, were forced to call in administrators PwC on Monday.

Some staff members have been retained to work on remaining contracts.

Part of the Blackwell Group, Masterton focused on dismantling and decommissioning in the petrochemical industry, but also worked on hazard and asbestos removal, asset recovery, waste management, building demolition and ground engineering.

Alan Brown, joint administrator, said: “After discussions with the existing lenders, suppliers and customers, the directors have taken the difficult decision to reduce the workforce and place the business into administration.

“Masterton did secure several large contracts in 2012, delivering strong revenue growth. However, it soon became apparent the contracts weren’t as profitable as first hoped, and despite a strong order book, the firm became reliant on its parent company for support.

“In response, the directors re-evaluated their long term strategy in 2014, seeking to restructure the business through a Company Voluntary Arrangement (CVA) with support from a boutique turnaround and restructuring firm.

“Despite this course of action, the directors were unable to deliver the anticipated revenue streams needed to maintain and develop the business or meet the terms of the CVA proposal.

“Our immediate priority will now be to work with the remaining employees, suppliers and customers to realise the value in the company’s assets and contracts.”