Interserve expected to enter administration

TheMightyTen · 15 Mar 2019 at 15:16

It was the Shareholders vote today on Interserve's rescue plan which has been rejected. This means that they are expected to enter administration by the end of the day.

This is massive and a risk to many services and functions important to National infrastructure and couldn't come at a worse time for the Government with it being whole heartedly distracted by the Brexit process. Add to that the risk to the 45,000 jobs of the people they employ it could well be a bigger disaster in the making.

https://www.bbc.co.uk/news/business-47582406

Bickaxe · 15 Mar 2019 at 15:27

Been watching this and feel for those employed by them. Our building is managed by them so many services might stop if they can't open up.

Scania · 15 Mar 2019 at 15:28

Interserve is expected to go into administration later today, although its contracts are likely to continue as normal and no job cuts are expected.

https://www.bbc.co.uk/news/business-47582406

It’s effectively going into a pre-pack administration, nothing like Carillion for example.

“Wake up to Money” on BBC Radio 5 discusses it at length this morning and - paraphrasing - said the two are not comparable and effectively it will carry on as before albeit with lenders - such as HSBC - being in charge.

The_Abyss · 15 Mar 2019 at 16:30

Unusually for these situations, Interserve's woes have not been brought about by an enormous defined benefit pension deficit. The scheme was sensibly closed to new members a decade ago, and at the most recent review it was marginally in surplus, although recent market falls may have swung that to a small deficit.

StriderX · 15 Mar 2019 at 16:32

Mildly humoured, what’s the next government appointed private contractor going to fail? Seems to be a trend.

I thought this was meant to be golden ages of private investment in government projects? Have we been lied to?

Pawnless Endgame · 15 Mar 2019 at 16:34

Same as Carillion. Never heard of either Carillion or Interserve until the day they folded.

I have heard of Capita and Atos though, and wonder if they will fall down the same pit?

Dis86 · 15 Mar 2019 at 16:35

Pawnless Endgame said:
Same as Carillion. Never heard of either Carillion or Interserve until the day they folded.

I have heard of Capita and Atos though, and wonder if they will fall down the same pit?

Tbh that probably says more about you! Both are /were massive companies.

StriderX · 15 Mar 2019 at 16:44

Capita is the most exposed with more than 90% of its contracts in the uk, and considering they seemingly only survive because the government keeps shovelling them with cash (gotta love private company welfare) for a terribly run and hated policy.

Almost certain to fail next.

mmj_uk · 15 Mar 2019 at 17:15

The trouble is there are loads of private companies sucking on the governnments teets these days, most of them will bid silly low amounts just to win the contracts and then they run the services on a shoestring budget to maximise profits and wages for the CEO's etc and because of that they provide a poor service. Companies who intend to provide a good service will either not bother bidding or not win the contract so it's a race to the bottom and ultimately bankruptcy really. I'm sure lots of people have become filthy rich in the meantime though.

eddiemcgarrigle · 15 Mar 2019 at 23:17

Pawnless Endgame said:
Same as Carillion. Never heard of either Carillion or Interserve until the day they folded.

I have heard of Capita and Atos though, and wonder if they will fall down the same pit?

It would be sweet justice if Atos where to fold. I've heard so many instances of their roughshod dealings with people during PIP assessments.

Flibster · 16 Mar 2019 at 04:00

eddiemcgarrigle said:
It would be sweet justice if Atos where to fold. I've heard so many instances of their roughshod dealings with people during PIP assessments.

One of my friends would laugh until she was sick. She's got a pretty rare joint condition and undergoing experimental surgery to relive the pain, so they took her mobility car away amongst other things as she could stand, on crutches, for very short periods.

Just imagine the if investigators going to the job centre and being told that 'sorry, you're don't meet the requirements for JSA'

Dolph · 16 Mar 2019 at 11:12

Looks like this has worked the way outsourcing is intended to. Company makes a series of mistakes, shareholders wiped out, services carry on.

At least there's a safety valve for failure that results in reform.

FoxEye · 16 Mar 2019 at 19:39

StriderX said:
Mildly humoured, what’s the next government appointed private contractor going to fail? Seems to be a trend.

I thought this was meant to be golden ages of private investment in government projects? Have we been lied to?

Dawnus Construction Holdings Ltd went bust a couple days ago.

They were building the recycling centre for Conrwall Council, as well as redeveloping The Kingsway in Swansea, amongst other public-funded projects.

https://www.cornwalllive.com/news/cornwall-news/work-halts-new-truro-recycling-2648265

'Course they've had all the money and now extra money has to be found from the public purse to find someone else to complete the work.

The_Abyss · 16 Mar 2019 at 19:54

[QUOTE="FoxEye, post: 32584208, member: 47864”]
'Course they've had all the money and now extra money has to be found from the public purse to find someone else to complete the work.[/QUOTE]

Where does it say that they were advanced all the money?

Greebo · 16 Mar 2019 at 20:20

The_Abyss said:
[QUOTE="FoxEye, post: 32584208, member: 47864”]
'Course they've had all the money and now extra money has to be found from the public purse to find someone else to complete the work.

Where does it say that they were advanced all the money?[/QUOTE]

I doubt that they will have but anybody coming in to finish somebody else's failed job will always need more than what was left with the agreed original contract. So if lets say there was £10m of work left, I suspect it will now cost £20m to get somebody else to do it.

The_Abyss · 16 Mar 2019 at 20:37

Greebo said:
Where does it say that they were advanced all the money?

I doubt that they will have but anybody coming in to finish somebody else's failed job will always need more than what was left with the agreed original contract. So if lets say there was £10m of work left, I suspect it will now cost £20m to get somebody else to do it.[/QUOTE]

Perhaps, but that’s just an opinion, and also wasn’t what was presented as fact by the other poster.