Insolvency practitioners Teneo are being lined up to act as administrators, and some 'non-core' staff are being made redundant.

However, the company’s board said there was a 'credible pathway' for its four shipyards to continue trading under new ownership.

Its main yard is in Belfast, best known for building the Titanic, with other operations at Appledore in England and Methil and Arnish in Scotland.

The company said the administration process would be confined to the holding company, Harland & Wolff Group Holdings plc, and the operational companies which run the yards are expected to continue trading.

That process had already started with the closure of its Scilly Isles ferry service before sailing had even begun.

Other non-core operations include a small business in the US and a marine services business which is to be sold in the hope of preserving 14 jobs.

A small number of non-core staff and others in support roles were told Monday they were losing their jobs.

The company warned that 'a further reduction in headcount in our core activities may be necessary' depending on the progress of the sales process.

A government spokesperson acknowledged that it was 'a concerning time for those affected' but added that Harland and Wolff has been clear that the process will not 'affect jobs at its shipyards or core operations'.

The spokesperson said: “We are clear that following a thorough review of the company’s financial situation, at present the market is best-placed to address these challenges and providing government funding would have meant a significant risk of losing taxpayer money.

' The spokesperson added that the government will work with all parties to find an outcome 'that delivers shipbuilding and manufacturing in Belfast, Scotland and across the rest of the UK and protects jobs'.

On Saturday, the firm’s executive chairman, Russell Downs, said the yards 'together or separately have a credible future'.

'We have a strong business case around the work they are currently doing and the work they expect to do in the future.

Rothschild bank is running the sales process and the company said a number of parties had contacted it to express an interest in acquiring some or all of the yards with a first-round bid deadline due shortly.

It is understood that Spain’s state-owned shipbuilder Navantia is interested in the Belfast operation.

Navantia is the major partner in the Fleet Solid Support (FSS) programme to build three Royal Navy logistics vessels with Harland and Wolff as subcontractor.

Sky News has reported that Babcock International, the UK defence contractor, is also a potential bidder for the Belfast business.

Northern Ireland's Deputy First Minister Emma Little-Pengelly said the interest in acquiring the company showed that 'the future of Harland and Wolff is very strong'.

Both Little-Pengelly and First Minister Michelle O'Neil, said they’d work with the company to find a solution that would protect jobs.

The company has also given more details of an investigation into the alleged 'misapplication' of funds under previous management.

It said Mr Downs took the step in response to concerns raised by customers over 'the alleged misapplication of remittances in excess of £25m and certain other lower value matters, such as the disbursement of funds for little or no corporate benefit'.

The company’s former chief executive, John Woods, told the Financial Times that the allegation of misapplication of funds was “ridiculous'.

GMB union national officer Matt Roberts said 'workers, their families and whole communities now face their lives being thrown into chaos due to chronic failures in industrial strategy and corporate mismanagement'.

Mr Roberts said the four Harland and Wolff yards were 'needed for our future sovereign capabilities in sectors like renewables and shipbuilding'.

“The government must now act to ensure no private company is allowed to cherry pick what parts are retained, in terms of which yards or contracts they wish to save,' he said.

Unite the Union's Irish regional secretary Susan Fitzgerald said that it was 'essential that all measures are taken to protect the workforce' at Harland and Wolff.

'It is vital that the right buyer is found, failing that the government should be prepared to intervene,' she said.

“Workers at Harland and Wolff should be in no doubt that Unite has their back and will leave no stone unturned in securing a long-term viable future for the workforce.

” Speaking on Monday, Mr Downs said it was 'important to recognise that this is extremely difficult news for the company's staff directly affected and will impact many others within group'.

'We will work to support our staff through this transition.

Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our four yards,' he continued.

'This will clearly be very unwelcome news for shareholders who have shown significant commitment to the business over the last five years.

'