Struggling shipbuilder Harland & Wolff, renowned for building the RMS Titanic, announced Monday that it plans to enter administration and delist from the London Stock Exchange after failing to secure a £200 million ($264 million) government loan to cover debts owed to creditors.
Harland & Wolff Group Holdings PLC, established in 1861, is facing insolvency, as confirmed in its most recent financial filings. The company intends to appoint Teneo consultancy as its administrator later this week, marking a significant step in its collapse.
Insolvency and Investigation
The shipbuilder, which has long been a prominent player in shipbuilding, offshore construction, and repairs, said it has suspended trading on the Alternative Investment Market (AIM) of the London Stock Exchange since July, when it failed to release its annual report for 2023. The company further announced it will not resume trading once the administration process begins.
In addition to the financial troubles, Harland & Wolff has appointed Simmons & Simmons LLP and PwC LLP to investigate claims that more than £25 million had been misapplied by former management, following allegations made by customers.
Impact on Workers and Communities
The collapse of Harland & Wolff, a key U.K. naval shipbuilder providing services to the British Ministry of Defence, has drawn strong reactions. Matt Roberts, national officer at the GMB Union, expressed concern over the chaos this will bring to workers, their families, and the broader community, citing “chronic failures in industrial strategy and corporate mismanagement.”
