Traders say they’ve been left “high and dry” after the UK’s largest timber firm axed 169 jobs and shut six sites in Scotland as it entered administration.
National Timber Group, which operates companies such as Rembrand, Scotia Roofing, and Forfar-based Orchard Timber Products, appointed administrators on Wednesday.
The company has 25 locations in Scotland, and six of those, in Dumbarton, Forfar, Newton Stewart, Edinburgh – Hawkhill, Anniesland and Stirling, have been closed with immediate effect.
169 jobs in Scotland have been lost as part of 561 roles across the UK being made redundant.
STV News understands that at around 1pm on Wednesday, staff at several sites were called into a brief online meeting and told they were being made redundant with immediate effect.
Others were instructed to continue working as normal.
National Timber GroupIn the morning, staff at the Rembrand Timber branch in Forfar were trading as usual, but by mid-afternoon, they were being asked to leave as the locks were being changed.
The business, which has a combined turnover of £350m, employs 1,200 people across the UK.
Redundancies have also been made at some of the company’s sites in Ayr, Dundee, Inverness, Grangemouth and Livingston, among others.
STV News understands some merchants are now operating on “skeleton staffing”.
Shaun Cameron, a joiner with more than three decades of experience in Forfar, says closures will pose challenges to independent traders.
He told STV News: “It’s a lot of travelling now, I’m going to be backwards and forwards to Dundee all the time, relying on deliveries coming in.
“I did have stock on order, and all the orders got cancelled, so now I’m kind of left high and dry.
“So now we’re really struggling, we’ve got jobs that need to get finished for Christmas, and now I’m left working all hours that God sends to try and get them finished.
“I hope they all get jobs eventually, it’s just a rubbish time of the year to lose your job.”
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On Wednesday, administrators Alvarez & Marsal were appointed to the firm, which is the UK’s largest independent timber distribution and processing group in the UK, headquartered in Sheffield.
While remaining sites continue to operate, some of the company’s production facilities have been mothballed.
Orchard Timber Products Ltd said on social media: “Sadly, yesterday the company entered administration, and ultimately ended up in redundancies across the group.
“Our heart goes out to all our colleagues across the network who have sadly lost their jobs. We are still open and trading.
“We can’t thank all our colleagues and customers enough for supporting us through this difficult time.”
The administrators have launched a sale process for the business and assets of the group, and say they’re encouraged by the level of interest so far, and are hopeful of finding a buyer.
Michael Magnay, joint administrator, said: “National Timber Group is the UK’s leading timber supplier to joiners, housebuilders and contractors, operating under a number of widely recognised brands.
“As joint administrators, we have launched an accelerated sale process, and we encourage any interested parties to contact us as soon as possible.
“We are encouraged by the level of interest so far, and we are hopeful of finding a buyer for all or parts of the group.
“Regrettably, the company’s liquidity challenges have led to a number of immediate redundancies.
“We are committed to supporting the affected employees through the redundancy process. We appreciate the support and patience of the highly skilled workforce in difficult circumstances, particularly at this time of year.”
The firm’s CEO, Mark Dixon, said last week it was in “advanced discussions” with an interested party regarding the sale of a substantial part of the business.
Mr Dixon said the business has been experiencing “difficult trading conditions and liquidity challenges for some time”.
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