Carillion Collapse. | Vital Football

Carillion Collapse.

Nick Real Deal

Vital Football Legend
Disastrous outcome for many businesses. The writing has been on the wall for years. I am hearing the company has been under bidding to get contracts then making losses due to no margin. Also late completions like Liverpool hospital being a year late .

Many were govt contracts and I don't get how such a company gets a contract without delivering it being financially sound. They were also bidding on and winning contracts overseas such as a Canadian telecoms project that went arse up.

The projects over here were so intertwined with govt with hospitals, prisons, schools and HS2 etc. I feel sorry for sub contractors and dependent suppliers who could go under due to debts owed to them. A small concern providing dry cleaning services is owed 100 k.

The pension fund is 600 million in deficit and they owe 1 billion odd to lenders. To get into this position is scandalous.
 
I bet the amount of corruption / backhanders under the covers in their sales and bdding are horrendous...but again the govt as a prime customer is probably culpable for putting so much work their way with poor quality due diligence or ignoring results of due diligence if it did not suit, or moe likely even failing to carry out due diligence at all, and will therefore push things under the counter, and whilst the directors and managers are looked after instead of being called to account, the workers wil get srewed as usual.
 
It has been suggested 2 middle East countries owe the 0.5 billion combined with doesn't help although finances were still disastrous. The govt gave them the 1.5 billion HS2 contract with a profit warning given 2 weeks before hand.

Apart from construction projects they had catering and cleaning contracts for schools, hospitals and prisons.

I bet the directors were bagging huge bonuses and now the tax payer has to stump up while the pensions could be reduced by 15 % for employees let alone losing their jobs . A full public enquiry is needed to hold to account the culprits, including the back hander beneficiaries.