Rok redundancies announced by administrators
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?
Date: 16th November, 2010
Articles from this Author
1st November, 2018
Budget 2018 - HMRC preferred creditor in insolvency
23rd March, 2018
20th July, 2017
Recast European Insolvency Regulation
26th June, 2017
The Recast European Insolvency Regulation (the “Recast EIR”)
Contact a Partner
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole