The UK construction giant Carillion goes into administration after huge financial troubles.
The second largest construction company in the UK has gone into administration after accumulating a £1.5bn debt. Despite recent talks with the government and its lenders, no deal could be reached to save the company and its 48,500 employees.
The company employees around 20,000 people in the UK. It also operates in Canada, the Middle East and the Caribbean. Operating under other brands globally, bringing the total up to over 48,500 employees.
Carillion works with many government schemes around the UK, most famously the Battersea Power Station in London. Carillion specialises in construction, as well as facilities management and ongoing maintenance, mainly in the public sector.
What went wrong?
In 2016 the company had sales in excess of £5.2bn but since then the company share price plummeted, leaving the business worth as little as £61m.
Some speculate the business undertook too man risky contracts and payment delays from the Middle East. Alongside the pension deficit of around £587m.
Government minister David Lidington advises that-
“All employees should keep coming to work, you will continue to get paid. Staff that are engaged on public sector contracts still have important work to do,”
It is essential for planned work to be undertaken as planned due to the company being involved in many government schemes and maintenance projects such as:
HS2 Building part of the high-speed rail line between London, Birmingham, Leeds and Manchester
MoD homes Maintains 50,000 homes for the Ministry of Defence
Schools Manages nearly 900 buildings nationwide
Network Rail Second largest supplier of maintenance services
Prisons Holds £200m in prison contracts
Get in contact
If you have been affected by the collapse of Carillion and are looking for a job in the construction industry get in touch. +0117 332 5937 or send us an online message.