RAIL maintenance contractor, Jarvis is set to appoint Deloitte as administrator after the firm said earlier yesterday it had run out of cash.
It is understood that four partners at the professional services firm, including Neville Kahn, will be handed the task of sorting through the struggling company’s finances.
Jarvis filed for administration yesterday morning after it had “been impacted by the considerable reduction in rail and plant work volumes”.
“The directors now have no option but to take steps to place the company into administration, and to request that trading in its shares be suspended with immediate effect,” said a statement on Jarvis’ website.
The news will place over 2,000 jobs at risk after Jarvis said its creditors were now not prepared to offer it the money it needed to continue as a going concern.
The rail company has relied heavily on work volumes coming from Network Rail with union officials blaming the recent cuts in the rail operator’s programme for the contractor’s collapse.
Deloitte declined to comment on its involvement.
Meanwhile, Denton Wilde Sapte, Slaughter and May and McDermott, Will & Emery were appointed as legal advisers.