One-sixth of the Carillion’s workforce has been laid off since the liquidation process began ©PA Images
One-sixth of the Carillion’s workforce has been laid off since the liquidation process began ©PA Images

Carillion contracts handover completed

6 August 2018

The last of the 278 contracts held by Carillion have been transferred to new service providers, bringing to an end the company’s liquidation trading process, which began in January.

These new service providers have saved 13,945 jobs in total, around three-quarters of Carillion’s employees before it went into liquidation

The total number of jobs lost has now risen to 2,787, which represents one-sixth of the company’s workforce. A similar number of employees left voluntarily.

Dave Chapman, the official receiver, paid tribute to the “significant effort put in by [Carillion’s] employees, supported by my team and those employed by the special managers”, for continuing to deliver public services since the company collapsed at the start of the year. 

“During this period 83% of the original workforce have either transferred with the contracts or resigned with another job to go to,” he said. “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 providing “limited transitional services” for some suppliers, and “finalising Carillion’s trading accounts to ensure that payment is made to suppliers who have provided goods and services to the various liquidations”, he said. 

He requested that suppliers take care to 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,” he added.

Last month, former Carillion boss Richard Howson accused the governement’s joint inquiry  into the firm’s failure of having “omitted or ignored” significant evidence which favoured the company.

Howson criticised the government for the way it procured services and managed contracts and said this contributed to the company’s downfall.

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