Redundant Jarvis workers set to miss out

EMPLOYEES made redunandant following the collapse of rail maintenance company Jarvis are unlikely to receive any of the money they are owed, according to a report by the failed firm’s administrators.

Deloitte said preferential and unsecured creditors of two of the largest Jarvis subsidiaries, Jarvis Rail and Fastline plant hire, are unlikely to receive anything.

More than £28m is owed in wages, holiday pay and other benefits to the 1,160 Jarvis staff made redundant at the York-based firm.

Jarvis went into administration in March after seeing work which it was reliant on from Network Rail reduce. Consequently the company’s lenders pulled financial support from the business.

However, Jarvis’s banks and the administrator will receive payment.

The company’s secured lenders, Bank of Ireland subsidiary Burdale Financial Services and Bank of America, were owed £17.1m. They have first call on Jarvis’s assets.

HM Revenue and Customs is also likely to miss out.