Work is continuing on Interserve’s Mount Oswald contract in Durham (Image: twitter.com/ADB221268)
Interserve has stressed that it is "business as usual" this week, after the business entered a pre-pack administration on Friday.
The company has sent out a message to employees via Twitter asking them to turn up for work as normal and that they will be paid as usual.
It has also set up a hotline for employees, customers and suppliers “with any questions you have about Interserve’s current journey”. The number is 0333 207 4180.
Meanwhile, senior figures within the business used social media to reassure the public that Interserve was functioning normally.
Tony Bellamy, senior site manager at Interserve Construction tweeted that it was business as usual at its £80m Mount Oswald project, where it is building a new home for the University of Durham’s John Snow College along with new student accommodation.
It's #businessasusul here at #MountOswald and it's great so see the site so busy and full of positivity @InterserveNews @IRVconstruction @durham_uni pic.twitter.com/zpCaW6f3Ix
— Tony Bellamy (@ADB221268) March 18, 2019
And Emma Millward, who works in the construction business’s marketing and communications team, stressed that work was also continuing on Interserve’s £11.5m contract to build a new oncology centre in Liverpool which will be known as the Rutherford Cancer Centre North West.
Business as usual @therutherford_c site #Liverpool as @IRVconstruction sub-contractors attend their daily safety briefing #interserve #Construction #safety pic.twitter.com/DJSR1Eiq76
— Emma Millward (@MillwardEmma) March 18, 2019
Interserve entered a pre-pack administration overseen by accountancy firm EY.
The group has already been sold to a newly incorporated company controlled by the group’s lenders.
The newly incorporated company to which the group has been sold, Montana 1 Limited, is in the process of being renamed Interserve Group Limited.
However, one former Interserve director and shareholder grumbled to CM that he had “lost millions” as a result of the share price collapse which concluded when the parent plc was placed into administration on Friday. Five years ago, Interserve’s shares were worth over £7 each; they stood at 6.25p when trading was suspended at the end of last week, before their listing on the London Stock Exchange was cancelled this morning.
Debbie White, chief executive officer, Interserve Group said: "With a stronger financial platform in place, Interserve will be able to concentrate on delivering value for our customers. The group’s transformation programme will continue, focused on improving our value propositions for customers, standardising our operational delivery, making Interserve simpler and more efficient through our Fit for Growth initiatives, and embedding a culture of ownership and openness throughout the group. Interserve is fundamentally a strong business and with a competitive financial platform in place we see significant opportunities ahead as a best-in-class partner to the public and private sector."
