Historic Titanic shipbuilder Harland and Wolff has called in administrators and said it was preparing to cut jobs today after falling into insolvency for the second time in five years.
The administration process is confined to the 162-year-old holding company while its subsidiary firms, including its prized Belfast shipyard, will continue to trade under the control of the directors, the firm said in a statement.
Jobs are now set to be slashed at the parent group, which currently employs 66 people.
“The administrators will unfortunately be required to reduce the headcount upon appointment,” bosses said in a statement to the market. “A number of employees will be retained to provide certain required services to the operational companies under a transitional services agreement with the administrators.”
Harland & Wolff warned last week that administration was inevitable after months of struggling under a major debt pile.
The shipmaker has been scrambling to make arrangements to avert collapse for months, including securing government funding, but the Labour government rejected its application for a critical £200m loan guarantee in July.
In an announcement to markets on Friday afternoon, the Aim quoted parent firm said it had called in Teneo to handle to insolvency. All its subsidiaries in Northern Ireland, Scotland and England are not subject to the insolvency process.
Investment bank Rothschild & Co was brought in in July “to assess strategic options for the Company and its subsidiaries”. The firm said today the process “remains ongoing and further updates will be made as appropriate.”
However, it reconfirmed that its the strategic review will not result in any returns to shareholders of the parent firm.
With the appointment of administrators, the firm also announced the resignation of Cavendish Capital Markets Limited as nominated adviser and joint broker.”
Earlier in September, shareholders in Harland & Wolff accused the shipyard and both major political parties of misleading investors over its financial future.
The firm has faced an exodus of senior executives in the run up to the collapse, including its chief executive in July and finance chief earlier this month.
Chairman Malcolm Groat also left in August and two other non-executive directors resigned.
More to follow…