Belfast’s Iconic Shipyard Seeks New Owners as Parent Company Enters Administration
Harland and Wolff, the iconic shipbuilding company known for constructing the Titanic, is facing administration for the second time in five years. The company’s board has announced that insolvency practitioners Teneo will be appointed as administrators, with the process confined to the holding company, Harland & Wolff Group Holdings plc.
While shareholders will see their investments wiped out, the operational companies running the four shipyards in Belfast, Appledore, Methil, and Arnish are expected to continue trading.
The company’s financial troubles stem from its capital-intensive nature and insufficient financial strength since its 2019 buyout from administration. Despite ambitious plans, including involvement in the Fleet Solid Support project for the Royal Navy, Harland and Wolff has been struggling with mounting losses. The 2022 audited accounts showed a loss of about £70 million, with turnover at £28 million.
As part of the restructuring, non-core operations are being wound down, including the closure of a Scilly Isles ferry service and the potential sale of a marine services business. Some non-core staff will be made redundant, with further reductions in headcount possible depending on the progress of the sales process.
The UK government has declined to provide funding, stating that the market is best placed to address the company’s challenges. However, they have committed to working with all parties to find an outcome that preserves shipbuilding and manufacturing across the UK while protecting jobs.
Also read: Harland and Wolff Scrambles for Financing After Loan Guarantee Rejection
Executive chairman Russell Downs remains optimistic about the future of the yards, saying on Saturday that the yards “together or separately have a credible future.” A sales process is underway, with Spanish state-owned shipbuilder Navantia and UK defence contractor Babcock International reported as potential bidders for the Belfast operation.
The company is also investigating allegations of fund misapplication under previous management, with accountants PwC and law firm Simmons and Simmons appointed to conduct the investigation.
Union representatives have called for government intervention to protect workers and ensure the yards’ retention for future sovereign capabilities in renewables and shipbuilding.
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