The company has also indicated that some operations will be wound down, including its Scilly Ferries service, marine services, and its U.S. and Australian subsidiaries. Harland & Wolff confirmed that potential buyers have shown interest in acquiring some of its subsidiaries, but it expects “no return likely for shareholders” and has warned of impending redundancies.
Financial Struggles and Government Rejection
Harland & Wolff’s financial difficulties have worsened due to high levels of overdue payments to creditors and significant losses across its operations. In an effort to stay afloat, the company hired Rothschild & Co. in July to explore its options.
However, the situation deteriorated when the U.K. government rejected the company’s application for a £200 million export development guarantee loan, which would have provided critical financial support. Without this aid, the company has been left with few alternatives, forcing it to proceed with administration.
The company’s downfall reflects broader issues within the U.K.’s industrial strategy and corporate governance, according to critics, and is likely to have lasting effects on the nation’s shipbuilding industry.
