Interserve's Parent Company Bites Dust

The Government has been accused of “irresponsibility” as it emerged key government contractor Interserve was handed £660 million in public contracts just as it slid into financial crisis. It collapsed into administration last week.

 Analysis by Tussell, a data analytics firm with expertise in government contracting, suggests Interserve continued to win lucrative projects even while it advised investors of its financial problems. A Cabinet Office spokesperson said “The awarding of contracts follows a robust process, including financial checks.”

The firm had issued profit warnings in May 2016 and twice in 2017. Since it started lining up a rescue deal in December it had secured £6 million in taxpayer-funded work.

 On Friday the parent company of Interserve fell into administration after its largest shareholder blocked a rescue deal. It was immediately bought out by lenders, wiping out shareholders and leading to uncertainty around its staff.

 Interserve is one of the UK’s leading providers of privatised public sector services, with a staff count of 45,000 maintaining places including schools, hospitals and train stations. 

Interserve Learning & Employment is a leading provider of welfare to work, accredited training and work-based learning services for the Department for Work and Pensions (DWP), the Skills Funding Agency (SFA), local authorities and business. As part of Interserve, an international PLC,they claim they are a well-capitalised business with access to considerable backing from our parent group.

ABC Note: this does not seem to be the case however....