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2,500 jobs back at risk after Carillion deal falls through

carillion 2

A Canadian company has pulled out of a deal to buy part of Carillion’s business, putting thousands of jobs back at risk.

A deal with facilities management firm BGIS – which would have saved 2,500 UK jobs – fell through due to a lack of support from customers.

BGIS announced it would acquire contracts to deliver services in the transport, hospital, education, justice and emergency services markets on 14 February, but said yesterday that closing conditions had not been met.

BGIS chief executive officer Gord Hicks said: “While we are disappointed at this outcome, we are continuing to pursue opportunities to grow our global business into the UK and welcome continued dialogue with prospective customers as we build out our platform for future growth updates.”

Some 700 jobs were secured when Amey took over a “significant number” of Carillion rail contracts last month. A total of 8,216 jobs have been saved so far, but 1,458 employees have been made redundant since the firm went into compulsory liquidation in January, the Official Receiver confirmed this week. 

A spokesperson for the Insolvency Service said: “The agreement with BGIS was conditional on ongoing support from customers for continued provision but this could not be secured.

“Transfers of other facility management contracts following sale agreements continue. Generally the contracts are with special purpose vehicles rather than public sector agencies directly.”

 

 

 

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