Secretary of State for Communities and Local Government Eric Pickles on a visit to Cowes Enterprise College.
THE Danish parent company of Cowes Enterprise College contractor Pihl UK has filed for bankruptcy.
A statement issued on Monday by E. Pihl and Son blamed the company's financial difficulties on the cost of post-completion work on several projects. It did not specify whether Cowes Enterprise College was one of those projects.
The company said it had also expanded too aggressively.
The press release stated: "The expansion took place without sufficient balance in the contract terms and without having sufficiently verified the credit quality of the foreign customers and subcontractors.
"The bankruptcy will have great and far-reaching negative consequences, financially and personally, for many skilful employees, for owners of construction projects, for partners and subcontractors and suppliers."
Pihl UK remained in operation yesterday (Thursday).
It is not yet known what impact the bankruptcy will have on the Isle of Wight Council’s ability to claim financial penalties from the company, resulting from delays in the school-building project, or on Pihl’s one year guarantee on the £32m building.
Stuart Love, Isle of Wight Council strategic director for economy and environment, said: "The council’s contract for the construction of Cowes Enterprise College is with Pihl UK, although in light of its Danish parent company, Pihl, filing for bankruptcy earlier this week we are speaking to Pihl UK and taking advice from our lawyers about any possible implications for the project.
"This development will not impact on the school’s move to the new building in time for the start of the new school year on Monday, September 9."