The building company Rok has gone into administration placing the jobs of up to 50 staff from Brighton and Hove at risk.
Rok, which has empty-looking premises in Woodingdean, revealed the move when it made an official Stock Exchange announcement yesterday.
The process of going into administration is designed to give financially troubled companies a chance of being rescued rather than shut down.
The announcement said: “The board of Rok PLC announces that it has resolved to put the company into administration and to make an application to the Financial Services Authority to suspend the listing and trading of the company’s ordinary shares on the Stock Exchange.
“It is anticipated that the administration and suspension will become effective shortly.”
A separate announcement was also made, officially suspending the company’s shares from being traded after Rok went into administration.
The move follows Rok’s admission almost four months ago that its plumbing, heating and electrical business was making big losses.
The revelation followed an independent review by the accountancy firm BDO.
Rok has appointed another accountancy firm PricewaterhouseCoopers (PwC) as its administrator to try to find a buyer for the company.
About 3,800 staff work for the company, including about 50 at its Brighton base in Woodingdean.
It has been involved in a number of projects in a five-year partnership with Brighton and Hove City Council.
These include a £2.5 million project at Varndean School, which included a new library and computer rooms.
Staff were offered some reassurance by Mike Jervis, the joint administrator and a partner at PwC.
He said: “Employees will naturally be concerned about their position, but they will continue to be paid if they attend work and perform their duties as normal.”
Rok’s shares have lost 90 per cent of their value over the past three years and were trading at 18.5p when they were suspended.
both property & Jobs in Brighton & the UK lacking somewhat. are we entering the so called double dip ?