Harland and Wolff enters administration as Appledore shipyard's future thrown in doubt
The owner of a Devon shipyard is to be placed into administration, meaning the future is uncertain for its workers in Appledore. Belfast-based Harland and Wolff, which built the Titanic, has announced that it is insolvent and that redundancies are expected.
The company, which owns the Appledore Shipyard, near Bideford, said between 50-60 immediate job cuts are expected but that staff employed at its four shipyards are yet to be impacted as it is non-core operations that are being wound down.
It is parent company Harland and Wolff Group Holdings PLC that is in administration and the company says that its shipyards will continue trading. Insolvency practitioners Teneo will act as administrators for the PLC and shares will be delisted, making them worthless.
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Harland and Wolff interim executive chairman Russell Downs said the group had faced a “very challenging time” due to historic losses and failure to secure long-term financing. He said that the Harland and Wolff shipyards have "a credible future" and have the potential to be profitable in the future.
The BBC reports that Rothschild bank is running the sales process and that there are a number of parties interested in buying "some or all of the yards," including Appledore.
Mr Downs said: “It’s important to recognise that this is very difficult news for staff and will affect many within group. We will work to support our staff through this transition. We also know that it will be very unwelcome news for shareholders who have shown significant commitment to the business over the last five years.
“The board, the senior managers and rest of the team are committed to deliver the best outcome for the four yards and communities they serve to ensure their continued operation into the long term under new ownership.
“Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our yards. Despite the recent challenges, the four yards have a strong capability, under new ownership and with the continuing support of their customers, to deliver UK-based ship building and leading UK based renewables employing over 1,300 committed personnel.
“It’s critical that the business comes through its financial troubles to secure an enduring legacy worthy of its name and its past for the benefit of the UK as a whole and its communities in particular.”
The company started to undertake a full review of all group holdings in July and concluded that H&W Group Holdings PLC is insolvent as per its last audited accounts and most recent management accounts.