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鈥檚 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鈥檚 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: 鈥淚t is possible for someone to buy the name, but typically that would get sold together with the whole business so it鈥檚 unlikely.鈥�
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鈥� 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 鈥渆xclusive discussions鈥� with Network Rail.
A spokesperson for Babcock confirmed the company was not interested in buying any part of Jarvis. He said: 鈥淚nitial discussions have taken place with Network Rail. These relate to the contracts for London North East and the Midlands.鈥�
Another part of Jarvis鈥� order book was a 拢55m track work deal on Bam Nuttall鈥檚 拢190m Chiltern line, on which construction is starting imminently. A Bam Nuttall spokesperson said it was waiting to see if 鈥渁 white knight鈥� arrived but was lining up an alternative partner.
Jarvis went into administration on 25 March after failing to renegotiate financing with its banks.
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