Interserve: UK outsourcing giant loses rescue vote
About 2 Months, 1 Week, 7 Hours, 34 Minutes ago.
Outsourcing giant Interserve has failed to persuade shareholders to approve a rescue plan for the company.
Interserve said it would apply to the High Court later on Friday for the business to be put into administration.
Although the firm says services will continue as normal, its failure has sparked more debate over using private outsourcers for public services.
Interserve has 45,000 UK staff, and 65,000 globally, cleaning schools, and running catering and building projects.
Shareholders voted 59.38% against the plan, which would have seen their stake reduced to just 5%, with lenders being handed the lion's share of the business.
Interserve said: "The board of directors of the company is convening an urgent board meeting to consider its options." However, the company added that "in the absence of any viable alternative" it is likely to formally apply to go into administration.