![\"MCD\"\/](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/07\/mcd.jpg\")
<\/p>\nA Scottish kitchen company has collapsed into administration with debts of more than \u00a31million after trading for 25 years. <\/p>\n
Merchant City Distributors Limited, based in East Kilbride, ceased trading in April, resulting in the loss of all 18 jobs.<\/p>\n
The business specialised in supplying, distributing and installing gas and electrical products.<\/p>\n
Joint administrators James Stephen and Ben Peterson of BDO have now published their first report, revealing the full scale of the company\u2019s financial difficulties.<\/p>\n
Unsecured creditors are owed \u00a31,064,122 and are not expected to receive any payment.<\/p>\n
HM Revenue and Customs (HMRC) is owed around \u00a3214,000, while appliance manufacturer Electrolux is the largest creditor with a claim of \u00a3780,330.<\/p>\n
Trade creditors are collectively owed \u00a3283,784, and BDO has so far received claims totalling \u00a3896,873. <\/p>\n
\u201cWe do not anticipate a dividend payment to unsecured creditors,\u201d the administrators said.<\/p>\n
Scottish kitchen company collapses into administration owing more than \u00a31million<\/p>\n
| <\/p>\n
MCD LTD\/LINKEDIN<\/p>\n
All 18 employees were made redundant when the company entered administration, with former staff holding preferential claims for unpaid wages, holiday pay and pension contributions.<\/p>\n
The report states the business suffered significant supply\u2011chain disruption that ultimately proved fatal.<\/p>\n
Directors concluded there was no sustainable future for the company as cash flow problems prevented it from completing deliveries of existing stock both before and after entering administration.<\/p>\n
BDO said it explored whether remaining stock could be delivered in the run\u2011up to insolvency or during the early stages of administration, but this was \u201champered by a lack of cashflow\u201d.<\/p>\n
![\"Kitchen\"\/](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/07\/kitchen.jpg\")
Negotiations with the company\u2019s principal supplier also failed to secure terms that would allow trading to continue<\/p>\n
| GETTY<\/p>\n
Although the supplier offered some flexibility on new stock purchases, the business could not generate enough cash to meet ongoing commitments.<\/p>\n
James Stephen said: \u201cThe challenging business environment impacted the company\u2019s ability to trade, and the directors unfortunately saw administration as the only option.\u201d<\/p>\n
The report also lists several smaller businesses left out of pocket, including REKK Recycling Limited in Uddingston, owed \u00a36,700; Hebrides Haulage on Lewis; and Holland House Electrical in Glasgow, each owed around \u00a31,000.<\/p>\n
The administrators concluded that persistent supply\u2011chain disruption, failed supplier negotiations and severe cashflow pressures left directors with no viable alternative but to place the company into administration.<\/p>\n","protected":false},"excerpt":{"rendered":"A Scottish kitchen company has collapsed into administration with debts of more than \u00a31million after trading for 25…\n","protected":false},"author":2,"featured_media":669422,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[35884,84,59,2222,50,200,56,54,55],"class_list":["post-669421","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-across-the-uk","tag-business","tag-gb","tag-money","tag-news","tag-scotland","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/669421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=669421"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/669421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/669422"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=669421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=669421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=669421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}