Titanic builder sinks into bankruptcy: Harland & Wolff hits a wall after liquidity crisis

Titanic manufacturer Harland & Wolff has confirmed it will go into administration for the second time in five years.

The Belfast-based group said a review found its parent company Harland & Wolff Group was insolvent and administrators would be appointed later this week.

Harland & Wolff is best known for building the Titanic in Belfast and also runs the historic Appledore shipyard in Devon and two further sites in Scotland.

But the 163-year-old company has been struggling to secure funding in recent months as it struggles to keep up with competitors and debt mounts.

A spokesman insisted yesterday that the vast majority of the company’s 1,300 jobs were safe, but warned that “further reductions in staffing levels in our core activities may be necessary.”

Harland & Wolff revealed that between 50 and 60 “non-core” staff, mainly based in its London office, will be made redundant immediately and “non-core operations” including its Scilly Ferries, maritime services and US businesses will be liquidated or sold.

And in a further blow, the company’s listing on Aim, London’s junior stock exchange, will also be cancelled, wiping out shareholders.

The Defense Ministry, however, played down concerns that any government contracts were in jeopardy.

Harland & Wolff joined forces with Spain’s Navantia in 2019 to win a £1.6bn contract to build three Royal Navy support vessels at the Belfast shipyard.

It was feared that if Harland & Wolff fell into administration the Royal Navy’s ships would be built in Spain.

This would be the first time in British naval history that a warship had been built by a foreign shipyard.

But a government spokesman said the “process” would not affect the group’s awarding of defence ministry contracts.

Trade unions said the government must intervene to protect jobs.

Around 20 companies are understood to have expressed interest in buying parts of the business in a sale process.

Sky News reported that London-listed defence contractor Babcock was considering a bid. The company declined to comment.