Belfast shipbuilder Harland and Wolff has announced the business is set to move into administration.
The firm said between 50-60 immediate redundancies are expected but said that staff employed at its four shipyards are not affected.
Harland and Wolff, which famously built the Titanic, has four shipyards – one in Belfast, two in Scotland (Methil on the Firth of Forth and Arnish on the Isle of Lewis) and one in England (Appledore in north Devon).
It is the second time the business has been placed in administration in five years.
A company statement said: “A full review of all group holdings commenced in July and has concluded that H&W Group Holdings PLC is insolvent on a balance sheet basis as per its last audited accounts and most recent management accounts.”
Insolvency practitioners Teneo will act as administrators and shares will be delisted.
The company is part of a consortium that landed a major contract to build new fleet solid support ships for the Royal Navy.
It had applied for a £200 million loan guarantee from the Government as part of efforts to restructure its finances.
However, the Government decided in August not to act as a guarantor on the lending – while also ruling out direct funding to maintain the company’s liquidity.
He said: “It’s important to recognise that this is very difficult news for staff and will affect many within group.
“We will work to support our staff through this transition.
“We also know that it will be very unwelcome news for shareholders who have shown significant commitment to the business over the last five years.
“The board, the senior managers and rest of the team are committed to deliver the best outcome for the four yards and communities they serve to ensure their continued operation into the long term under new ownership.
“Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our yards.
“Despite the recent challenges, the four yards have a strong capability, under new ownership and with the continuing support of their customers, to deliver UK-based ship building and leading UK-based renewables employing over 1,300 committed personnel.
“It’s critical that the business comes through its financial troubles to secure an enduring legacy worthy of its name and its past for the benefit of the UK as a whole and its communities in particular.”
A Government spokesperson said: “While we know this will be a concerning time for those affected, Harland and Wolff has been clear this process will in no way affect jobs at its shipyards or core operations such as delivering its contracts for the Ministry of Defence.
“We are clear that following a thorough review of the company’s financial situation, at present the market is best-placed to address these challenges, and providing Government funding would have meant a significant risk of losing taxpayer money.
“We are continuing to work extensively with all parties to find an outcome for Harland and Wolff that delivers shipbuilding and manufacturing in Belfast, Scotland and across the rest of the UK and protects jobs.”
He said: “While this outcome may have seemed increasingly likely in recent months, we must find a solution that not only keeps this historic shipyard in east Belfast, but allows it to grow and thrive.
“The yard is more than just a historic landmark; it has a vital role to play in our national defence, particularly in shipbuilding and maintenance.
“Given its strategic importance to our defence infrastructure, the Government must act quickly and decisively to secure its future.
“The workforce’s skills and expertise are invaluable, not just to the yard itself but to our broader economy and defence capabilities.”
“The Government must actively engage with all interested parties and prioritise this issue.
“We must ensure the yard and its workforce have a viable and sustainable future.”
