The logistics, construction and facilities management contractor Interserve Plc has gone into administration. The FTSE-listed company appointed Alan Hudson and Hunter Kelly of accountancy firm Ernst & Young LLP as administrators; and has been sold to a newly incorporated company to be controlled by its lenders.
Debbie White, Chief Executive Officer, Interserve Group said: “With a stronger financial platform in place, Interserve will be able to concentrate on delivering value for our customers. The Group’s transformation programme will continue, focused on improving our value propositions for customers, standardising our operational delivery, making Interserve simpler and more efficient through our Fit for Growth initiatives, and embedding a culture of ownership and openness throughout the Group. Interserve is fundamentally a strong business and with a competitive financial platform in place we see significant opportunities ahead as a best-in-class partner to the public and private sector.”
Jon Trickett, Labour’s Shadow Minister for the Cabinet Office, accused the UK Government of having again failed and learning nothing from building contractor Carillon’s collapse just over a year ago.
He said: “This latest disaster, which could have been avoided, shows that the Government is not prepared to change their dogmatic attachment to outsourcing, and it is costing the country dearly. It is crucial that Interserve’s administrators do not simply strip the profits in favour of shareholders and leave the taxpayer to pick up the bill for the rest. The public purse should not be burdened with these failures.
“We need clear assurances from the government that should this happen; services, jobs and pensions will be protected. Nothing less will do. Labour will end this crony capitalism and put an end to this reckless outsourcing once and for all.”
The firm recently reported a £12m refurbishment of Rotherham Interchange bus and rail station; including solar panels, new seating, lighting, information displays, electrics and flooring, CCTV and free public wi-fi.
