Scots enterprise has ceased trading
A Dundee charity has gone into administration after 150 years, with dozens of jobs lost.
Dovetail Enterprises is one of the oldest furniture and mattress manufacturers in Scotland.
The charity provides employment and training opportunities for disabled and disadvantaged members of the community.
However the organisation plunged into administration despite £1 million of support from the Scottish Government.
The move sees 47 of its employees made redundant.
Rising costs, an ageing factory building and a failure to secure additional funding are reportedly to blame for its closure.
Council administration leader Mark Flynn, who was previously listed as a director of the firm, said: "I am saddened to hear that Dovetail Enterprises has gone into administration and ceased trading.
"We as a council have provided significant financial support to Dovetail through both annual and additional funding and I know other partners have assisted wherever possible.
"My thoughts today are with the employees affected.
"The Partnership Action for Continuing Employment (Pace) team has been alerted and stands ready to offer its full support to the workforce."
Geoff Jacobs and Alistair McAlinden of the advisory and restructuring firm Interpath were appointed as joint administrators on 28 March.
Some employees have been retained to assist the administrators, who are engaged with multiple agencies to support employees as well as exploring options to sell the business and assets.
The charity recorded an income of £3.2m according to its latest accounts for the year to the end of March 2023, down from £3.7m the previous year.
Jacobs said: “Supporting employees through this incredibly difficult period is an absolute priority for us.
“Our specialist team on site is co-ordinating a package of measures alongside multiple agencies, including the Scottish government through its Partnership Action for Continuing Employment and Dundee City Council, to provide as much assistance as possible to staff.
“The package incorporates a range of initiatives comprising support for the Department for Work and Pensions’ Work Coach programme, disability employment advisers, Access to Work claims support, and assistance with applications to the Redundancy Payment Service, which together will help guide staff through the process and towards new employment.”
The GMB union is calling for a buyer to step forward amid the "huge blow" for employees.
Vicki Leonard, GMB Scotland organiser, said: "The skilled and committed workers deserve every support to ensure this important social enterprise company can continue under new ownership.
"We have heard a great deal from politicians recently about the need to help people with disabilities into work but words are cheap.
"The skilled jobs supported by this company will not be easily replicated and everything must be done to ensure a new owner is found and supported."
