Belfast, Northern Ireland-based shipyard Harland & Wolff, which constructed the Titanic, says it is now insolvent and plans to go bankrupt, possibly within days.
Its main shipyard operations are expected to continue, but acknowledged the business is now effectively up for sale.
Once employing about 20,000 in its heyday, Harland & Wolff has a workforce of about 1,600 people in Belfast and other businesses in England and Scotland. The company said it will “continue to trade as usual” at its four shipyards.
It could enter bankruptcy protection proceedings within days
Advisory firm Teneo is expected to be appointed as the business’s administrator. H&W has been struggling for many years and was in bankruptcy proceedings just five years ago. Its future became precarious again when the new UK Labour government refused to guarantee a £200 million loan. This is despite the shipyard winning a £1.6 billion order for Royal Navy ships.
Related: 11 Titanic Facts
Harland & Wolff then suspended its shares for missing the deadline for filing its audited accounts. The company posted a loss of £25 million in 2023. The business recently got a cash injection from one investor, US-based Riverstone Credit Management.
Exploring options from other yards
In the past few weeks, its CEO and other board members have departed, and it appointed Rothschild & Co. to explore strategic options with a view to a possible sale of the business.
| “The newly appointed directors highlighted in late July that there was no evidence of any other potential funding available to support the business. While that remains the case, the company is currently in discussions with several parties to secure interim funding while the Rothschild & Co process is ongoing,” Harland & Wolff said in an update. |
H&W is now banking on buyers to acquire some or all of the group’s subsidiaries so it can focus on its core shipyard operations. However, a full sale is also a possibility.
Interest from other firms
“A number of parties have expressed an interest in acquiring subsidiaries and a first-round bid deadline is due shortly. The board is of the view there is a credible pathway to continuing core operations built around a four-yard operation, ongoing projects, and other (as of yet) uncontracted revenue across its sites,” it said in the statement.
The Villa Vie Odyssey cruise ship is currently at the Belfast shipyard awaiting final touches before it is approved to begin its long-delayed round-the-world voyage.
Meyer Werft Shipyard in Papenburg, Germany, is addressing its financial difficulties with government bailouts and loans.
