ADMINISTRATORS from PwC have been appointed to ailing builders Rok.
The repairs and maintenance services group entered administration due to difficulties in meeting its financial obligations.
“Our immediate priority is to urgently review the financial position of the company and seek a buyer of the businesses,” said joint administrator and PwC partner Mike Jervis.
“We will work with the existing management team, employees, suppliers and customers to try and ensure that we achieve a positive solution. Employees will naturally be concerned about their position, but they will continue to be paid if they attend work and perform their duties as normal.”
The company employees around 3,800 people. PwC’s Rob Hunt and Jeremy Webb join Jervis as joint administrators.
“With Rok going into administration so soon after Connaught, there will be undoubted concern about how construction works are being procured in the social housing sector,” said Michael Conroy-Harris, senior legal manager at law firm Eversheds.
“After being a relatively benign sector for some time, the recent falls in activity are clearly testing many contractors and it appears that some have been tendering below cost price.”
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