This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Carillion set to go into liquidation after last-ditch talks collapse

15 January 2018

Following emergency meetings with its lenders over the weekend, hosted by the Cabinet Office, no solution has been found and Carillion is reported to be heading for liquidation.

Reports in all the major news outlets this morning have featured the story, with considerable focus placed on the level of debt accrued by the business.

This is said to have reached a total of around £1.5bn, including more than £600m in pensions deficits.

The fund will now be managed by the Pension Protection Fund, which has said it will protect workers' benefits, according to the BBC.

Concerns have been raised for the welfare of the company's 20,000 UK staff, along with its other employees around the world.

Although many of its contracts will continue with other providers, with staff transferred to new employers under TUPE regulations, it is unclear how many will lose their jobs and how safe their pensions are.

The picture for the Carillion supply chain is less clear and today's news will be a major blow for many, especially for those with retention funds or large amounts of overdue payments.

Questions are now being asked on a number of levels, including why the government continued to grant new contracts to Carillion after it issued numerous profit warnings last year.

Labour shadow business secretary Rebecca Long-Bailey was quoted by the BBC as saying the company's loss-making contracts should not be taken on by the government, while the profitable ones were sold to private companies.

The news was described as "disastrous" by RMT union general secretary Mick Cash, along with other union representatives seeking reassurances on workers' futures.

In addition to the level of debt accrued, questions are also being asked about the government's procurement process.

Further announcements are now awaited over the details of the Carillion liquidation.

Print this page | E-mail this page


Article image Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the rubbish for general collection.Full Story...

Article image Companies sign up to employ ex-offenders

More than 120 businesses have recently registered to work with prisons to provide employment options for offenders.Full Story...

Carel Group acquires 100% of Hygromatik GMBH

Legionella failings result in substantial fine and updated water management processes

Total Solutions MD Sharmin Akter at the Facilities Show 2018