Hawick businesses hopeful of being paid £60,000 owed by failed building firm

Murray and Burrell in Galashiels.
Murray and Burrell in Galashiels.

Eight Hawick businesses left out of pocket by about £60,000 between them after Borders building firm Murray and Burrell went into administration last year look set set to have their claims settled in full.

They are among 150 ordinary creditors of the Galashiels family firm to submit claims worth more than £800,000 since insolvency expert Richard Gardiner was appointed as administrator in November.

Dobbie and Michie in Hawick is among the businesses owed money by Murray and Burrell.

Dobbie and Michie in Hawick is among the businesses owed money by Murray and Burrell.

All the Roxburgh Street company’s creditors are backing Mr Gardiner’s proposal for recouping their cash from the sale of its land and assets.

In his report, posted this week on the Companies House website, Mr Gardiner reveals that the company had total liabilities of £1.85m, including inter-company loans and money due to HM Revenue and Customs.

He said the sale of the firm’s assets, including land and equipment, is expected to realise £2.47m.

That would enable the claims of all the failed firm’s ordinary creditors to be met in full and also make payment of interest a possibility.

Mr Gardiner is also optimistic of a successful outcome for the 38 Murray and Burrell employees left out of work by its collapse.

They are claiming more than £210,000 in wage arrears, holiday pay, redundancy and notice payments.

The firm’s Hawick creditors are Orchard Terrace plumbing outfit Heattech, owed £34,403; Martin Chandler Elite Decor, of Wellogate Brae, owed £7,825; painter and decorator DA Oliver, of Overhall Road, owed £7,370; Midburn Joinery, based at Midburn Farm Cottage, claiming £5,248; Fisher Avenue cleaning services company Clean Royal, seeking £3,500; Borders Hardware Trade and DIY, of Mansfield Road, owed £554; High Street flooring firm Dobbie and Michie, owed £391; and Liddesdale Road plumber Douglas Rae, owed £214.

Mr Gardiner, of Fife-based chartered accountancy firm Thomson Cooper, said that rescuing the company as a going concern was not an achievable option given the “considerable ordinary creditor liabilities”.

“It was also acknowledged that the directors – Michael Burrell, his wife Marguerite and their daughter Sally Kemp – did not have an appetite to trade the business,” he states.

“Accordingly, the purpose of the administration is to achieve a better result for creditors than would have been obtained through an immediate liquidation of the company.”