Receivers have moved in at Glasgow-based East End Sawmills Ltd and its production arm, Stewart Timber.
The 59-year-old family company was hit by the combination of the construction downturn, timber shortages last winter and bad debt, according to receiver PKF.
Originally based in Dalmarnock, the company relocated to the Shawfield trade park in Rutherglen, Glasgow, with Stewart Timber moving to Cumbernauld, when its site was compulsorily purchased for developments for the 2014 Commonwealth Games.
“They invested £1.5m in their move to new premises, completed in 2008 when the recession was at its peak, and incurred £350,000 of bad debt due to the collapse in construction,” said Bryan Jackson of PKF. “The firm then invested in a new log processing line, which was completed in December 2009. But this experienced delays in getting started due to the [bad] winter, which prevented log delivery and resulted in massive reduction in cash flow.”
