Richard Morris calls in receivers from E&Y

Colin Dempster and Tom Burton of
& 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.’

Further reading:

Business recovery: search and rescue 

Farepak customers could swamp PwC meetings 

Scottish confectionary group collapses

Related reading