Sep
06Connaught calls in the administrators
Tagged Under : Connaught, Connaught Calls
UK social housing company Connaught has been forced to call in KPMG as administrators to the group after banking support was apparently withdrawn. This is a company which employed more than 10,000 people in the UK and is active in a whole host of public-sector service projects which will need to be protected from the ongoing issue with the company.
It seems as though Connaught’s problems began some months ago when the company identified over 30 government projects which had been deferred due to the recent austerity measures. As a consequence, the company was able to clarify a potential £200 million reduction in future income which has impacted upon short-term trading and its relationship with the company’s bankers. It is believed that Connaught had a £220 million debt pile which had been supported by banks over the last few weeks until the company’s luck ran out.
A number of other UK public sector service dependant companies are already hovering over the remains of Connaught in the full knowledge that local authorities will need to transfer these operations to “active” companies as soon as possible. Even though Connaught is said to have been in talks with potential investors and partners over the last few weeks it would appear that time simply slipped by for the group.
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