Carillion update

The latest update following the liquidation of construction giant, Carillion, has been provided by the government.

All contracts have now completed transfer; with the last of 278 contracts provided by the Carillion group to new service providers now in place. This signals the end of the trading phase of the liquidation.

The liquidation trading period, which commenced on 15th January 2018, ensured the continued provision of essential public sector services across hospitals, schools, roads, rail and other key infrastructure without any service disruption or major incidents.

During the liquidation period, some 13,495 jobs, some three quarters of the workforce, have been saved, with jobs transferred to other suppliers. This week has seen a further nine staff leave the business, taking total redundancies to 2,787 (15%) positions to date. Some 240 core employees are currently being retained to help close out the remaining activities.

Commenting on the contract transfer, the Official Receiver, Dave Chapman, said: “Carillion is the largest ever trading liquidation in the UK. The continued uninterrupted delivery of essential public services since the company’s collapse in January reflects the significant effort put in by its employees, supported by my team and those employed by the special managers.

“During this period 83% of the original workforce have either transferred with the contracts or resigned with another job to go to. Staff have been very professional throughout the liquidation and I want to thank them for their support as we worked to find new suppliers.

“The focus of the liquidation will now shift to the provision of limited transitional services for some supplier and finalising Carillion’s trading accounts to ensure that payment is made to suppliers who have provided goods and services to the various liquidations. Suppliers are asked to ensure they supply their final accounts as soon as possible.

“My investigation into the cause of the company’s failure, including the conduct of its directors, is also underway.”

 

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