Glasgow practice ADF Architects has made all 27 employees redundant and started insolvency processes after several key projects were mothballed
The firm, which worked on schemes including the £200 million overhaul of Glasgow Harbour, appointed Brian Milne from accountant French Duncan as provisional liquidator.
ADF was launched in 1984 but suffered irreversibly in recent years as major schemes were shelved.
Milne said: ‘This is a very sad day for ADF Architects. The firm has had major cash flow problems this year. The company did not have sufficient funds to pay wages at the end of February so decided that it could not continue trading.
‘We shall be disposing of the main assets of the business, which consists of work in progress and debtors. Unfortunately, the business cannot be sold as a going concern as it is not viable. Any parties interested in acquiring these assets should contact me as soon as possible.’
Milne warned that ADF’s demise was not an isolated incident.
‘The main reason for the liquidation was the delay or mothballing of a number of significant projects,’ he said. ‘This is a common issue in the architecture profession where work can be commissioned and completed over a considerable period, but ongoing payments are not made and can be dependent upon the submission for planning permission.
‘If payments are delayed or a project does not go ahead then the practice may not be paid, or the payment is delayed for a considerable time resulting in serious financial issues and cash flow problems.
‘Over the last five years there have been 84 Scottish insolvencies of architecture and related engineering activities and related technical consultancies … showing just how difficult it can be to operate a practice in the current marketplace.’