Construction giant Carillion has entered into liquidation with debts estimated to be around £1.5 billion. Carillion employs around 20,000 in the UK.
It has been reported that Carillion outsourced virtually all of its work, which included maintenance of prisons, hospitals and schools and military contracts. Carillion relied heavily on sub-contractors and therefore the financial consequences will be widely felt across hundreds of small businesses as a result of Carillion being unable to pay its debts.
PWC, the accountancy firm which is overseeing Carillion’s liquidation, has stated that “unless told otherwise, all employees, agents and subcontractors are being asked to continue to work as normal and they will be paid for the work they do during the liquidation”. However, other reports suggest that work has stopped on many projects with workers being told to go home. In the wake of Carillion’s collapse, the future of thousands of Carillion’s employees and those of its sub-contractors looks uncertain.