Shipbuilding firm Harland and Wolff has confirmed the enterprise is to be positioned into administration for the second time in 5 years.

Insolvency practitioners Teneo are being lined up to act as directors and a few “non-core” employees are being made redundant.

However, the corporate’s board mentioned there was a “credible pathway” for its 4 shipyards to proceed buying and selling below new possession.

Its important yard is in Belfast, greatest identified for constructing the Titanic, with different operations at Appledore in England and Methil and Arnish in Scotland.

The firm mentioned the administration course of will likely be confined to the holding firm, Harland & Wolff Group Holdings plc, and the operational firms which run the yards are anticipated to proceed buying and selling.

However, shareholders will see the worth of their investments within the enterprise solely worn out.

In an announcement, the agency mentioned its non-core operations are being wound down.

That course of had already began with the closure of its Scilly Isles ferry service earlier than crusing had even begun.

Other non-core operations embody a small enterprise within the US and a marine providers enterprise which is to bought within the hope of preserving 14 jobs.

A small variety of non-core employees and others in help roles have been advised Monday they have been dropping their jobs.

The firm warned that “an extra discount in headcount in our core actions could also be essential” relying on the progress of the gross sales course of.

On Saturday, the agency’s government chairman, Russell Downs, mentioned the yards “collectively or individually have a reputable future”.

“We have sturdy management in all of our yards,” he added.

“We have a powerful enterprise case across the work they’re at the moment doing and the work they anticipate to do sooner or later.

“They have a funding want within the close to time period however into the long run they are going to be producing money.”

Rothschild financial institution is operating the gross sales course of and the corporate mentioned plenty of events had contacted it to specific an curiosity in buying some or the entire yards with a first-round bid deadline due shortly.

It is known that Spain’s state-owned shipbuilder Navantia is within the Belfast operation.

Navantia is the most important associate within the Fleet Solid Support (FSS) programme to construct three Royal Navy logistics vessels with Harland and Wolff as subcontractor.

Sky News has reported that Babcock International, the UK defence contractor, can be a possible bidder for the Belfast enterprise.

Mr Downs advised the BBC he hoped to have the option to conclude a deal or offers by the top of October.

The firm has additionally given extra particulars of an investigation into the alleged ‘misapplication’ of funds below earlier administration.

Accountants PwC and legislation agency Simmons and Simmons have been appointed to conduct the investigation.

It mentioned Mr Downs took the step in response to considerations raised by prospects over “the alleged misapplication of remittances in extra of £25m and sure different decrease worth issues, such because the disbursement of funds for little or no company profit”.

The firm’s former chief government, John Woods, advised the Financial Times that the allegation of misapplication of funds was “ridiculous”.

GMB Union nationwide officer Matt Roberts has mentioned that “employees, their households and entire communities now face their lives being thrown into chaos due to persistent failures in industrial technique and company mismanagement”.

Mr Roberts mentioned the 4 Harland & Wolff yards are “wanted for our future sovereign capabilities in sectors like renewables and shipbuilding”.

“The authorities should now act to guarantee no personal firm is allowed to cherry choose what components are retained, by way of which yards or contracts they need to save,” he mentioned.

Speaking on Monday, Mr Downs mentioned it’s “necessary to recognise that that is extraordinarily troublesome information for the corporate’s employees instantly affected and can affect many others inside group”.

“We will work to help our employees by this transition. Unfortunately, extraordinarily troublesome choices have had to be taken to protect the way forward for our 4 yards,” he continued.

“This will clearly be very unwelcome information for shareholders who’ve proven vital dedication to the enterprise over the past 5 years.”