Carillion the company often refereed to as ‘The business that ran the UK’ has collapsed and gone into liquidation. The company operates in the UK, Canada, and the Middle East and has 43,000 staff with 20,000 of them based in the UK. Involved in the construction and facilities management across road, rail, defence, education, & communications.
The collapse will impact numerous major PPP projects such as HS2 and will have a negative effect on hundreds of suppliers and businesses potentially affecting many people across the UK. It is believed that the cause behind the collapse was problems with a number of the PPP projects that Carillion was involved in and that the cost overruns that come with such problems and the narrow margins that Carrillion was winning bids at was it’s ultimate demise.
The collapse of Carillion is a watershed moment. It is time to put an end to the rip-off privatisation policies that have done serious damage to our public services and fleeced taxpayers of billions of pounds. pic.twitter.com/Q9zjU7o3Mq
— Jeremy Corbyn (@jeremycorbyn) January 15, 2018
The company had been suffering financial woes for a long period of time. It had a massive £900 million debt and £590 million deficit in it’s pension fund. 2017 had seen a 70% drop in it’s share value over the last 6 months with investors exiting the business.
The British government, Carilion, & its creditors had held rescue talks over the last weekend to secure funding for its continued operations but had failed to reach agreement and by Monday morning it’s shares had ceased trading on the British stock exchange.