Administrator Deloitte says end is near for 164-year-old brand, as buyers circle FM division
The administrator of collapsed rail contractor Jarvis has said the company’s 164-year-old name is unlikely to survive any break-up and sale of the group.
It follows news that Jarvis Accommodation Services, the group’s facilities management arm, has attracted interest from private equity firms and Carillion. The FM division employs about 800 people and is regarded as the healthiest part of the business.
A spokesperson for administrator Deloitte said: “It is possible for someone to buy the name, but typically that would get sold together with the whole business so it’s unlikely.”
The remainder of the firm, mainly track maintenance and renewals divisions, has ceased trading after laying off 1,100 workers last week.
Babcock is favourite to take over Jarvis’ Midlands and London North East track renewal contracts. According to reports, John Howie, chief executive of rail at Babcock, sent an email to staff saying the firm was in “exclusive discussions” with Network Rail.
A spokesperson for Babcock confirmed the company was not interested in buying any part of Jarvis. He said: “Initial discussions have taken place with Network Rail. These relate to the contracts for London North East and the Midlands.”
Another part of Jarvis’ order book was a £55m track work deal on Bam Nuttall’s £190m Chiltern line, on which construction is starting imminently. A Bam Nuttall spokesperson said it was waiting to see if “a white knight” arrived but was lining up an alternative partner.
Jarvis went into administration on 25 March after failing to renegotiate financing with its banks.