Over a century after the Titanic’s tragic voyage, the shipyard where the famous vessel was built is facing its own crisis. Harland & Wolff, the British company behind the construction of the Titanic, has now entered administration—a process much like bankruptcy in the U.S. The company has been struggling with financial difficulties for years, but things have taken a turn for the worse recently, as reported by The New York Times.
The company will likely be sold again and turned into a private company. The firm stopped trading on the London Stock Exchange in July after missing a deadline to release audited accounts. Executives are set to meet with shareholders later this week. Among those interested in buying parts of the company are Navantia, a state-owned shipbuilder from Spain, and British defense company Babcock International. Both have shown interest in Harland & Wolff’s Belfast shipyard, where the Titanic was famously constructed.
Struggles Mount for the Historic Shipbuilder
The announcement of administration follows the British government’s decision not to back an INR 2,209.98 crore ($264 million) loan for Harland & Wolff earlier this summer. Although the government isn’t planning to provide financial support, the British Department for Business and Trade is working to find a way to protect the 1,300 jobs currently at risk within the company.
Image: Harland & Wolff
For now, Harland & Wolff’s four shipyards will keep running. However, there’s uncertainty surrounding an ongoing contract to build three ships for the Royal Navy. A restructuring expert and the interim executive chair of Harland & Wolff, Russell Downs, told The Times, “The group faces a very challenging time given the overhang of significant historic losses and its failure to secure long-term financing.”
For 163 years, Harland & Wolff has been known for building 1,600 ships in total, including iconic ships like the Titanic and the Olympic. However, as times have changed, the company has had a hard time keeping up, and part of the problem lies in its struggle to embrace new technology. In 2019, the shipyard faced administration for the first time, but new owners stepped in to keep it afloat back then.
