RMJM's Subsidiaries Put Into Receivership
Scotland's largest architecture firm RMJM Group has performed a major corporate shake-up by putting three of its subsidiaries into receivership, The Herald Scotland reported. Insolvency professionals were appointed to RMJM Limited, RMJM Scotland and RMJM London after directors concluded the businesses could no longer continue to trade. In a statement, RMJM Group, run by Sir Fraser Morrison and his son Peter, said there was "a deep sense of regret" over the move. However, following their appointment, receivers from accountancy firm KPMG immediately completed a sale of the business and assets of each company to the newly formed RMJM Architecture. RMJM Group, which worked on the Scottish Parliament, said the deal includes the contracts the subsidiaries were working on and preserves all 120 jobs in its UK operations. Blair Nimmo, head of KPMG restructuring in Scotland, said: "The companies' businesses have been very severely impacted by the slowdown in the construction industry as a result of the worldwide recession. "The sale of the businesses to RMJM Architecture will help facilitate continuation of the companies' current contracts, preserve the employment of some 120 people and achieve the maximum return for the companies' creditors." RMJM Group said its subsidiaries in the Middle East, United States and Asia were unaffected by the restructuring. Peter Morrison, who lives in New York, said: "The RMJM team around the world have shown tremendous resilience and loyalty in extremely challenging circumstances over the last number of years. The company has been affected by problems in the global economy which have led to many major construction projects being abandoned or delayed. RMJM was founded in Edinburgh in 1956 by architects Robert Matthew Stirrat Johnson-Marshall. Its work in Scotland includes the Royal Commonwealth Pool in Edinburgh, the Tron Theatre in Glasgow and the Falkirk Wheel. Read more.
In a related story, The Scotsman reported that the firm of architects behind the development of the Scottish Parliament building has called in the receivers on UK operations in a bid to avoid or delay paying millions it owes to creditors. Read more.