Titanic shipbuilder to collapse into administration as union blasts ‘chaos’
A MAJOR shipbuilder behind the Titanic is set to collapse into administration – putting jobs at risk.
Harland & Wolff confirmed it is insolvent and is working to appoint administrators.
The company revealed that jobs would be lost but failed to specify the exact number.
The GMB union has urged the government to intervene and protect the four shipbuilding yards.
It argued that the shipbuilder’s services are crucial for Britain’s “future sovereign capabilities” in the renewable and shipbuilding sectors.
“Workers, their families and whole communities now face their lives being thrown into chaos due to chronic failures in industrial strategy and corporate mismanagement,” the union added.
“The government must now act to ensure no private company is allowed to cherry pick what parts are retained, in terms of which yards or contracts they wish to save.”
The company’s board stated there is a “credible pathway” for its four shipyards to continue operating under new ownership.
However, shareholders will lose all of their investments in the business.
The major shipbuilder confirmed it began shutting down its Scilly Isles ferry service before it even started operating.
A few staff members were informed on Monday that they would be losing their jobs.
Russel Downs, the firm’s executive chairman, claimed the yards “together or separately have a credible future”.
He added: “We have strong leadership in all of our yards.
“We have a strong business case around the work they are currently doing and the work they expect to do in the future.
“They have a funding need in the near term but into the future, they will be generating cash.”
Reports of the company’s alleged “misapplication” of funds have emerged following an investigation.
Accountants PwC and law firm Simmons and Simmons were appointed to examine its finances.
It was issued by the chairman after concrens were raised by customers over “the alleged misapplication of remittances in excess of £25million and certain other lower value matters, such as the disbursement of funds for little or no corporate benefit”.
Howeve, John Woods, the company’s former chief executive, told the Financial Times that the allegation was “ridiculous”.
Rothschild bank is overseeing the sales process, with several parties reportedly interested in buying some or all of the yards.
The Spanish state-owned shipbuilder, Navantia, has expressed interest in the Belfast operation.
Navantia is the major partner in the Fleet Solid Support (FSS) program, which aims to build three Royal Navy logistics vessels, with Harland and Wolff serving as the subcontractor.
Russell Downs told the BBC that he hopes to finalise a deal by the end of October.
What happened to the Titanic?
The British ocean liner famously sank on April 15, 1912 after slamming into an iceberg in the freezing waters of the North Atlantic Ocean.
She was on her maiden voyage from Southampton to New York City, promising a journey of luxury and comfort.
It boasted a gymnasium, swimming pool, smoking rooms, fine restaurants and cafes along with its high-class cabins.
The Titanic’s advanced safety features for its era earned its “unsinkable” reputation.
But that proved a tragic irony when it struck the iceberg, leading to the deadliest ship sinking ever seen at the time.
Of approximately 2,224 on board, 1,496 died.
The disaster has captured the imagination of poets, writers and filmmakers ever since – most notably the 1997 movie Titanic, featuring Kate Winslet and Leonardo DiCaprio.
It remains the fourth highest grossing film of all time, making a bumper $2.264 billion in box office earnings.