Interserve has begun a formal redundancy consultation after confirming plans to shut down its specialist power contracting business.

The move is part of a review of all group operations in a bid to bring down a debt pile currently totalling more than £500 million.

The specialist business, which forms part of the Interserve industrial services division, works with network operators across the UK including Northern Powergrid, Scottish Power Energy Networks, Siemens and National Grid.

A consultation period for employees, which will run to early April, could see over 70 staff lose their jobs or be redeployed within the wider group.

The construction and support services firm said it will complete all contracted works, with the majority finishing by the end of June.

The closure of the power business is an attempt to “consolidate and centralise the industrial portfolio”, it added.

In January Interserve said it was making progress with its three-year ‘Fit for Growth’ rescue programme which aims to increase efficiency and simplify the business.

This came a month after it secured additional short-term funding to ease off its immediate financial troubles last month until March 31 at least.

Its full 2017 results are expected in the coming weeks.

An Interserve spokesman said: “We can confirm we are undergoing an operational restructure within our industrial division.

“After careful consideration we have decided to close down our power business, as we look to consolidate and centralise our industrial portfolio.

“We are committed to completing all contracted works and anticipate the majority of projects will be complete by the end of June 2018.

“All employees affected have been informed of the decision, with a consultation period running until early April. We are working internally to ensure as many people are redeployed within the business.”