Rok cuts a further 1,800 jobs

By This Is Money
Updated: 12:28 EDT, 16 November 2010

A further 1,800 redundancies at struggling building services firm Rok were announced today, bringing total job losses to around 2,600.

Administrators said the cuts would come from the closure of the firm's maintenance and improvements division in the UK and Rok's construction business in Scotland, both of which suffered job losses in the previous week.

Other redundancies have come from its plumbing, heating and electrical (PHE) division.

Among those already shown the door were chief executive Garvis Snook and finance director Sean Cummins - who joined the company only 46 days ago.

The self-styled 'nation's local builder' appointed PwC as administrators last week after it fell into difficulties in meeting its 'financial obligations'.

Only 650 staff remain at the firm.

There have been more than 100 expressions of interest in Rok since it went bust two weeks ago with debts of £190m following a series of profit warnings.

But Mears Group, the favourite to rescue failed building group Rok, has cooled on a deal, as revealed by Financial Mail and This is Money at the weekend.

With interest fading, administrator PricewaterhouseCoopers seems unlikely to find a taker for Rok as a single entity. Instead, it is likely to sell Rok in three parts - a Scottish business, an operation for England and Wales and a maintenance and insurance arm.

Mears had hoped Rok might have big contracts for social housing maintenance, but is considering its options after seeing the books.

Outsourcing specialist Mitie, based in Devon, has emerged as a possible buyer for Rok's insurance work.