Following its announcement of problems within its plumbing and heating division in August, Rok has entered into administration.
Administrators for the Exeter-based building services provider said they would try to find a buyer for the company and all staff would be paid in the meantime.
H&V News (August 25) reported that the plumbing and heating division of Rok had experienced problems with contracts, leading to the division behing integrated into its maintenance and improvements sector following a £3.8m loss for the first part of the year.
Both Rok plc and Rok Building Limited have been placed in administration.
The failure of social housing services provider Connaught remains fresh in the minds of the industry and the latest announcement will be seen as another sign of the tough trading environment.
Rok was among those expected to benefit from Connaught entering administration, resulting in 1,400 staff being made redundant.
The statement read: “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.”
Mike Jervis, joint administrator and partner at PricewaterhouseCoopers (PwC) said: “Our immediate priority is to urgently review the financial position of the company and seek a buyer of the businesses.
“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.”