ROLLING STOCK maintenance firm Railcare has been placed in administration, following the apparent breakdown of takeover talks with Knorr Bremse.
It had been reported that the deal was almost complete, but it appears that failure to reach final agreement over the past few days has left the firm in crisis.
Railcare has premises in Wolverton and Springburn, and the RMT has alleged that problems became apparent when staff were not paid.
The union is also claiming that the Government has rejected appeals for a £1 million bridging loan to keep the company in business.
RMT general secretary Bob Crow said: “RMT is calling on Vince Cable and the Government to step in to secure the future of these 500 key rail fleet engineering jobs following the collapse of Railcare. The Government cannot sit on their hands and watch this situation play out for the want of what we believe is not much more than a million pounds of cash flow finance. Reports that Railcare have already been turned down for assistance make a mockery of the Government’s business strategy and their stated objective of protecting skilled jobs."
No one at Railcare has been available for comment, but administrators BDO confirmed that they were appointed on 31 July.
In a statement, the firm said: "The Joint Administrators are currently liaising with customers to understand their exact requirements, so trading may continue in administration while a purchaser for the business and assets is sought."
BDO business restructuring partner Kim Rayment said: “Unfortunately the economic climate and difficult trading conditions significantly affected the business, together with reduced demand. However, we are hopeful of securing a sale and, depending on customer requirements, the Company may continue to trade whilst this is explored.”
Railcare's clients include Greater Anglia, and the company has also just completed the refurbishment of the Heathrow Express fleet.