PLANS to open an upgraded Jobcentre may be delayed because two companies refurbishing the building have gone into administrative receivership.

Staff from Curzon Interiors, which is part of Curzon Holdings and specialises in refurbishing hotels and office interiors, were working on the new Jobcentre Plus offices at Roman Square, Sittingbourne.

About 80 people face redundancy.

Receivers from accountant Ernst & Young were appointed on March 7 and work was halted.

A spokesman for Ernst & Young said Curzon Interiors and its sister company CHL 2000, which has also gone into receivership, had employed 104 people, but only 28 staff were working on current contracts, with the rest facing redundancy.

One of the joint administrative receivers, Roy Bailey, said: "The companies have unfortunately run out of working capital, making it difficult for trade to continue. We are currently in discussions with employers with a view to successfully resolving the situation."

The present Jobcentre office at St Michael’s Road is to close as part of a national "efficiency improvement" scheme.

The office is being replaced by the upgraded Jobcentre Plus at the social security office in Roman Square, offering a single, integrated service to all people of working age. Staff from the St Michael’s Road office were due to relocate to the Roman Square site this month.

However, a spokesman for the Department for Work and Pensions said: "There may be a delay to the opening of Sittingbourne Jobcentre Plus. A recovery plan is being drawn up and it is hoped that work will resume as soon as possible."