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Collapse of King George Hospital's cleaning contractor will have 'no immediate impact' on services

PUBLISHED: 15:36 19 March 2019 | UPDATED: 15:36 19 March 2019

Goodmayes scenes for wrap. King George Hospital

Goodmayes scenes for wrap. King George Hospital

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The collapse of an outsourcing firm - which holds a £35million contract with King George Hospital - last week will have "no immediate impact" on services, Redbridge's NHS health trust has said.

Administrator EY was appointed on Friday, March 15, to oversee the transfer of debt-ridden contractor Interserve’s assets to a new company controlled by its lenders.

Interserve has insisted that this deal, referred to as “pre-pack administration”, will protect services and jobs at the company.

Barking, Havering and Redbridge University Hospitals Trust (BHRUT) signed a deal with the ailing company last summer to provide cleaning, catering and porter services at King George Hospital, in Barley Lane, Goodmayes.

“There will be no immediate impact on the operation of our hospital,” a BHRUT spokesman said.

“All the services provided by Interserve, including portering, cleaning and catering services, will be provided as usual.

“We’d like to reassure all our staff, patients and the community that the running of the hospital is unaffected.

“We have no concerns about our safety or ability to operate fully.

“We’d also like to reassure our valued colleagues from Interserve that we are committed to working with Interserve and the administrators to support them.”

The spokesman also confirmed that there have been no issues in the quality of service provided.

Interserve employs 45,000 people and is one of the government’s biggest contractors – cleaning schools and hospital as well as running construction, catering and probation services across the country.

The company entered into pre-pack administration after its shareholders voted against a rescue plan which would have reduced its debt by £485m but diluted investors’ holdings to five per cent.

An Interserve spokesman told the Recorder: “It is business as usual and Interserve will continue to provide a satisfactory service to its customers.”

The Cabinet Office, which monitors public sector contracting with the private sector, has been contacted for comment.

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