(qlmbusinessnews.com Tues. 17th Sept, 2024) London, UK —
Harland and Wolff Shipyard Faces Administration for the Second Time in Five Years
Harland and Wolff, the shipbuilding company famous for constructing the Titanic, is set to enter administration for the second time in five years. The business has appointed insolvency firm Teneo to oversee the process, with redundancies already impacting some non-essential staff.
Despite the setback, the company’s board expressed optimism that its four shipyards — including its flagship yard in Belfast, as well as those in Appledore (England), Methil and Arnish (Scotland) — could continue operating under new ownership.
The administration process will be confined to Harland & Wolff Group Holdings plc, while the operational entities running the shipyards are expected to continue trading. However, shareholders are expected to lose the entirety of their investments.
Harland and Wolff has already begun winding down some of its non-core businesses, including closing a ferry service to the Scilly Isles and selling off a US-based subsidiary. A marine services business is also being sold in a bid to protect 14 jobs. Further staff cuts may be required depending on the outcome of the sale process.
The UK government has acknowledged concerns over the situation but stated that jobs at the company’s shipyards and core operations, such as contracts with the Ministry of Defence, would not be affected. A spokesperson said that while government intervention was not deemed appropriate at this stage, they would work to find an outcome that protects jobs and sustains shipbuilding across the UK.
Harland and Wolff’s executive chairman, Russell Downs, stressed the potential for the shipyards to remain viable under new ownership. “We have strong leadership and a solid business case for the work our yards are doing and will continue to do in the future,” he stated.
Rothschild bank is overseeing the sales process, with interest reportedly expressed by Spain’s state-owned shipbuilder Navantia and UK defence contractor Babcock International. A deal or deals are hoped to be finalised by the end of October 2024.
The company is also conducting an internal investigation into alleged “misapplication” of more than £25 million in funds under the previous management. The investigation will be led by accountants PwC and law firm Simmons & Simmons.
Union leaders have voiced concern over the potential disruption to workers’ lives. The GMB union warned of “chronic failures in industrial strategy and corporate mismanagement,” while Unite the Union called for all necessary measures to be taken to protect jobs at Harland and Wolff. They have urged the government to intervene if a suitable buyer cannot be found.
Despite the challenges, Northern Ireland’s Deputy First Minister, Emma Little-Pengelly, remained confident about the company’s future, describing Harland and Wolff as “iconic” and vital to the region’s economy. First Minister Michelle O’Neil echoed this sentiment, pledging to work with the company to protect jobs.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referencted in the accompanying news stories.
