The Danish construction firm behind Aberdeen University’s £57million library and a £120million school-building programme has gone bust.
Pihl filed for bankruptcy, blaming over-aggressive expansion in Denmark and overseas and cost overruns on several projects.
Its UK interests, which were run from a head office in Aberdeen, are now under the administration of accountant and business adviser Baker Tilly.
A spokesman for Baker Tilly last night said: “Following a strategic review undertaken by the E. Pihl and Son group of companies in 2012, a decision was made not to tender for further contracts in the UK.
“The parent company recently entered into formal insolvency proceedings in Denmark and was no longer in a position to fund the continued trading of Pihl UK.”
Pihl is one of Denmark’s oldest contractors, employing 2,400 people and turning over £730million a year. It is thought the decision to file for bankruptcy was prompted by heavy losses in the UK and other overseas markets.
The 126-year-old group hit the headlines a few months ago after a judge ordered it to pay its share of £205,000 damages awarded against its joint-venture consortium with Galliford Try over problems on the £72million Museum of Liverpool building.
There were also problems over windows at Aberdeen University’s new library, which opened in September 2011. Hundreds of window panes had to be replaced after the wrong colour of glass was used.
Pihl was the main contractor for the library project and also Aberdeen City Council’s 3Rs school building programme.
Announcing its decision to file for bankruptcy, Pihl said the move would have “great and far-reaching negative consequences, financially and personally, for many skilful employees, for owners of construction projects, partners, subcontractors and suppliers”.
The group added: “It is terrible to have to make a decision that will affect the day-to-day lives and financial foundations of so many people and businesses.”