Carillion liquidation threatens thousands of jobs

Carillion, the UK's second largest construction firm, has collapsed after last-chance talks with lenders failed. The firm is involved with many major government contracts and employs over 20,000 people in the UK alone. 

Though known as a construction firm, Carillion also provides cleaning and catering services across the country's transport, healthcare, education and defence sectors. 

An application was made to the high court for a compulsory liquidation of Carillion before the opening of business on Monday, with the firm having debts of approximately £1bn and a pension deficit around £600m.

Carillion's statement to the London Stock Exchange read: “Despite considerable efforts those discussions have not been successful, and the board of Carillion has therefore concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect.”

There are now widespread fears amongst smaller firms that bills won't be paid and amongst thousands of employees that their jobs might be at stake. Companies that are in Joint Venture with the collapsed giant will also suffer with Balfour Beatty already confirming a £35m -£45m hit thanks to its three relationships with Carillion.