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Rok: Further 1,800 job cuts announced as buyers fail to materialise

Administrator PwC has announced a further 1,800 job cuts at Rok, bringing total redundancies since the firm went into administration last week to almost 2,800.

The job cuts were announced this afternoon after PwC failed to find a buyer for the maintenance and improvements and Scottish construction parts of the firm.

The administrator had told CN last week it wanted to do a deal in “days, not weeks” or business could “evaporate”.

A statement from administrator PwC said: “Regrettably, the redundancies made today were necessary as it became clear in the last 24 hours that we were not going to be able to find a purchaser for these parts of the Group.Operations cannot continue and hence we have had to take steps to close both the maintenance and improvements division as well as the Scottish construction division. We have retained a small workforce to assist us in this process.”

Over recent days it has become clear that a deal was unlikely, with one of Rok’s main rivals last week saying from the outset it would not be looking closely at the wreckage of the £700 million turnover firm.

PwC has set up an employee relations helpline and is working closely with employees affected by its decision to shed so many jobs.

Staff affected by this will be paid for the period since PwC was appointed, up to and including today.

Mr Hunt said: “As we have already committed, those employees who continue to be employed by the company and attend work will continue to be paid, as normal.”

The only part of the business left remaining appear to be the construction and social housing business solely in England.

PwC is still talking to parties interested in taking over these parts of the business and said: “We continue to maintain a dialogue with parties interested in the construction and social housing business in England. This division employs approximately 500 people and we expect to have further updates during this week.”

An industry source confirmed Leadbitter was among the firms still in talks with the administrator.

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