Deloitte administrators in at Jarvis
End of the line for Jarvis as administrators seek buyers for rail operators
Four insolvency practitioners from Deloitte have been appointed to Jarvis,
the rail maintenance operators.
Nick Edwards, Neville Khan, Phil Bowers and Ian Brown were appointed joint
administrators of both Jarvis plc and its subsidiary Jarvis Accommodation
Services.
Edwards, partner, 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,” he added.
Jarvis announced last week they would enter administration after lenders
refused to offer the company further credit.
A statement by Jarvis said: “Trading conditions have been, and continue to
be, difficult.”
“With the widely accepted view that public spending has to come down, people
need to appreciate the inevitable knock-on effect of business failures,
especially among businesses with a high dependency on public money,” said David
Hudson, head of corporate insolvency at Baker Tilly.
He added: “In Jarvis’ case, Network Rail’s decision to cut its track renewal
programme by 30% which, as for any organisation losing such an amount of work,
led to great difficulty for the business. For businesses reliant on public
spending, the recession was tough but the recovery will be even tougher.”
Further reading:
Jarvis
on track to call in administrators