Richard Morris calls in receivers from E&Y
Almost 90% of staff at Scottish electrical contracting business to be made redundant, as receivers are called in
Colin Dempster and Tom Burton of
Ernst
& Young have been appointed receivers of electrical contactor
D H Morris,
cutting almost 90% of the workforce as their first action.
Originally founded in Dundee and now headquartered in Cumbernauld, DH Morris
operates from five locations across Scotland and employs about 471 employees,
however, 406 of these are set to be made redundant. All 13 group companies are
in receivership, E&Y has confirmed.
E&Y’s Colin Dempster said of the redundancies: ‘It is unfortunate that we
have had to make these job cuts to a long established business but the company
has been trading at a loss that cannot be sustained.’
E&Y added in a statement: ‘Following a comprehensive review of contracts
across the group, a significant level of write-downs were required in the
carrying value of Work in Progress (WIP). This in turn has led to a substantial
increase in the business’ funding requirement which the company has been unable
to meet.’
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