Rok redundancies announced by administrators
Date: Tuesday 16th November, 2010
Author: Chris Laughton
Profile: Chris Laughton
1,800 redundancies have been announced today by the administrators of Rok plc and Rok Building Ltd. The redundancies are in the maintenance and improvements division throughout the UK and also in the construction business in Scotland.
On top of the 1,066 redundancies already announced at Rok in the last week, another 1,800 construction industry jobs being lost will be devastating for the individuals in question less than 6 weeks before Christmas, as well as being a blow to the industry and the economy. Worse, that is only part of the story. There will be many sub-contractors and suppliers who face the double whammy of losing what they're owed by Rok and losing future business from the closed operations.
Administrators have to act in creditors' interests. They cannot continue operating businesses unless they are making money or can be sold. Closure becomes the only option.
The speed of the collapse here is a bit surprising. The many interested parties we heard about last week did their due diligence and clearly decided that some parts of Rok were past saving. Could the directors have acted sooner, while those business units still had some value?
Keywords: Rok redundancies administrators
Please note that the opinions expressed in this blog represent the views of the author and not the views of Mercer & Hole.