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RMJM Scotland placed into receivership

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October 26 2012

RMJM Scotland placed into receivership
RMJM has announced that its British businesses, encompassing RMJM Scotland, RMJM London and RMJM, have all been placed into receivership with KPMG.

The move is said to be part of a strategic review being undertaken by RMJM’s directors to create a new European division, which has acquired the businesses.

RMJM Europe will now sit alongside RMJM Middle East, RMJM US and RMJM Asia as constituent parts of the RMJM Group.

Commenting on the restructuring chief executive Peter Morrison said: “The RMJM team around the world has shown tremendous resilience and loyalty in extremely challenging circumstances over the last number of years.

“The financial issues the business has faced are a direct impact of a brutal global recession and the well-documented impact of this on the UK construction market. This restructuring is designed to support the clients, projects and the staff of RMJM’s business in the UK.”

RMJM insist that no job losses will arise as a result of the move.

13 Comments

Edward Harkins
#1 Posted by Edward Harkins on 26 Oct 2012 at 11:10 AM
I didn't mean to doubt you guys, but when I first read this in your twitter message I replied 'are you sure'. It's just that it was such a startling piece of news.
http://www.linkedin.com/pub/edward-harkins/15/40/635
cynical
#2 Posted by cynical on 26 Oct 2012 at 11:30 AM
What a complete joke. RMJM's new 'Europe' practice has bought all 120 UK staff and all of the practices workloads. However they decided not to bother taking the companies debt with them - meaning that as and when the companies are liquidated - they will get first option to also buy all of the equipment/assets/property - and the companies will be left as shells. Then the UK taxpayer will foot the bill when the corporate losses are written off. All creditors dues large sums - including ex-staff will get virtually non of the money owed to them - perhaps 1p per £. And any outstanding legal cases will cease to exist as the companies being sued will no longer exist.
This strikes me as paramount to fraud.
Bob the Builder
#3 Posted by Bob the Builder on 26 Oct 2012 at 12:09 PM
This raises the question can the “newco” claim that they have designed buildings ?
If they’re not willing to take the debt are they able to take the project experience with them ?
If they are currently tendering projects based on their experience of “oldco / RMJM” how will that work exactly ?
cynical
#4 Posted by cynical on 26 Oct 2012 at 12:24 PM
yes I beleive they can - a practice CV is simply an asset like a desk or computer, and can be purchased. Same way as if another practice altogether bought the company - the previous work in terms of design copyright would pass to the new owners. They also have purchased all of the staff - and to some extent their own experience is just as valid. This is the the Dogma of corporate company structure and the very reason why large companies like RMJM have probabaly 15-20 subsiduary companies - All controlled by a holding company - however debt cannot transfer in this way. Legislation provides that as long as the debt is not illegal in any way - then the named company i.e 'RMJM Scotland Ltd' - that company solely is responsbible for its debts. The system is there to be worked - if you know how to do it. Its just the same way starbucks transfer all their profit as internal funding and loans to avoid paying tax. If you have a big enough comapny structure - and clever accountants - you can bend the 'legal rules'.
Gers
#5 Posted by Gers on 26 Oct 2012 at 13:52 PM
if it where just about the bosses then, as with Rangers, they should be made to start again from the bottom - no big juicy commissions just basic bread and butter stuff until they can prove their worth and work their way back up again.

However for the staff's sake I hope they keep some work going.
Mac Mac
#6 Posted by Mac Mac on 26 Oct 2012 at 14:01 PM
I hope that the new company will not be allowed to join the RIBA or RIAS Registered Practices!!
it is a disgrace, the Morrison family should pay off all of the "oldco"debts.
boaby wan
#7 Posted by boaby wan on 26 Oct 2012 at 14:17 PM
something in this must surely be against the code of conduct?!
headline gives the impression that they are going down the pan rather than just shedding debts/liability, but that actually seems worse... there should be some kind of block on their ability to tender for publicly funded projects at least
Walt Disney
#8 Posted by Walt Disney on 26 Oct 2012 at 15:03 PM
For some reason Urban realm has posted a picture of Harry Hill's 'Tim Nice-But-Dim' character instead of Peter Morrison. Come on Urban Realm - Standards!!!
Bill
#9 Posted by Bill on 27 Oct 2012 at 09:06 AM
Does this also means that the Employment Tribunals against the oldco will no longer be viable.

I also dislike the way it's being portrayed as "restructuring" when in fact it's just a way of getting out of paying their debts and creditors.

Absolute disgrace.
Frank Lloyd Wrong
#10 Posted by Frank Lloyd Wrong on 29 Oct 2012 at 08:51 AM
Walt - come on now, let's be mature about this, forget about the mindless insults and try and stick to the facts and keep this professional.
It was Harry Enfield, not Harry Hill. Standards, old boy. What What!
Cheap as Chips
#11 Posted by Cheap as Chips on 29 Oct 2012 at 13:57 PM
I think this transfer is just postponing the inevitable!!
The Morrison's have a lot to answer for if RMJM ultimately do go down the tubes!!
Walt Disney
#12 Posted by Walt Disney on 30 Oct 2012 at 14:30 PM
Frank - I noticed the error just as I clicked submit! Standards really are dropping.
As RMJM are currently doing quite a bit of work for the Disney corporation it was nice to find out from Urban Realm that they had gone into administration. Good to see that TNBD is very focussed on good client relationships.
Desperate Dans
#13 Posted by Desperate Dans on 5 Nov 2012 at 23:48 PM
As another poster commented, what a complete joke. RMJM's new 'Europe' practice will basically ensure a transition from 'oldco' RMJM to the 'Newco' RMJM, thus transfering any debt liabilty away from the old company. It's tantamount to corporate fraud. However, with Fred the shred onboard they are ideally placed to work the system to their advantage as he did. It tells you everything you need to know about RMJM that they have this charlatan as a director within the company. The whole things smacks of desperation which is only going to delay the inevitable. Once again, it will be the general staff who suffer the consequences, not those higher up the food chain!

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