BREAKING NEWS: Administrators look to stabilise Jarvis
THE administrators called in to Jarvis, the York-based rail network services group, are hoping to stabilise the business following a “rapid assessment” of its finances.
Speculation has been mounting that around 2,000 jobs are at risk following yesterday’s move after Jarvis’ lenders refused to extend further support to the company to help it continue trading.
Nick Edwards, Neville Kahn, Phil Bowers and Ian Brown, all partners at accountancy firm Deloitte, have been appointed as joint administrators of Jarvis and its subsidiary Jarvis Accommodation Services.
Mr Edwards said: “Unfortunately, Jarvis Plc reached a position where a substantial funding gap meant they were unable to continue trading.
“Our immediate priority will be to work with stakeholders to stabilise the business while we identify which parts of the business we can continue to trade and seek buyers for as going concerns.”
The joint administrators are assessing the financial position of the companies, and will then start discussions with key stakeholders in order to formulate a strategy to stabilise the business.
Jarvis, which has been hit by a substantial reduction in volumes of rail and plant work in recent months, said it needed more capital from its banks and key client Network Rail – the owner and operator of Britain’s rail infrastructure – to enable it to win more work.
But with that financial support not forthcoming the group, which is chaired by former Conservative cabinet minister Steven Norris, said it would be placed into administration and its shares were suspended on the London Stock Exchange yesterday morning.
