Almost 250 people have lost their jobs after Kirkcaldy-based Havelock International entered administration.
It was revealed yesterday that staff at the interior fit-out specialist had not been paid after what was described as a ‘cashflow’ issue, but reassurances were made that the company was still viable and had a full order book.
However, a statement this morning from joint administrators David Baxendale and Zelf Hussain of PricewaterhouseCoopers (PwC) said the directors had concluded that it was not possible to continue to operate the business while a buyer was sought.
David Baxendale said: ““The company has faced a challenging trading environment for some time, and the directors have concluded that there is no longer any reasonable prospect for the company to continue to trade.
“Prior to our appointment, we explored ways that the business might continue to operate whilst a buyer was sought. However, regrettably this has not proved possible and it has therefore been necessary to make 247 employees redundant with immediate effect.
“Our priority is to ensure that all employees are assisted in processing their redundancy claims as a priority. We will be in further contact with all staff as soon as possible and will outline the support available to complete redundancy payment forms. Advice and assistance will also be available from JobCentre Plus and PACE.”
It is understood a small number of staff will be kept on to assist the administrators while the company winds down operations.