MORE than 50 Hampshire jobs may be at risk after building service giant Rok was plunged into administration.
The firm which touted itself as the “nation’s local builder” has now been put up for sale.
PwC were appointed as administrators when the south coast-based firm admitted difficulties in meeting financial obligations.
Rok have 30 regional bases including a branch office in Fareham.
Staff in the office, which employs 52 people, said they were not allowed to comment.
Administrators have moved quickly to reassure workers they will be paid if they continue to carry out their duties.
Mike Jervis, joint administrator and partner at PwC, said: “In response to changes in market conditions, Rok Plc had taken a number of steps to improve operations and to develop a sustainable and profitable business going forward. However, due to difficulties in meeting the company’s financial obligations, the company and certain subsidiaries have been placed into administration to protect the business and assets. “Our immediate priority is to urgently review the financial position of the company and seek a buyer of the businesses. We will work with the existing management team, employees, suppliers and customers to try and ensure that we achieve a positive solution. Employees will naturally be concerned about their position, but they will continue to be paid if they attend work and perform their duties as normal. We will provide further updates throughout the coming weeks.”
The announcement comes just months after Rok revealed sizeable half-year losses, and an independent review by accountants BDO uncovered serious failings at its plumbing, heating and electrical business.
The group follows in the footsteps of rival social housing firm Connaught, which entered administration in September – leading to some 1,400 redundancies.
Rob Hunt, Mike Jervis and Jeremy Webb, of PwC, were appointed joint administrators of Rok, which provides repair and maintenance to schools, councils and housing associations, and said further updates would be given throughout the coming weeks.
Chief executive Garvis Snook took over the running of the firm in 2000, when it was known as Exeter Building Contractors (EBC).
The company was losing money and had a huge pension deficit, but within seven years Mr Snook had turned it around with the firm only narrowly missing out on being listed on the FTSE 250.
He had transformed the company with a market value of £7 million as EBC to £322 million.
But the company was hit hard by the financial crisis and extreme weather conditions and was forced to cut some 750 jobs.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here