By Elliott Brown from Birmingham, United Kingdom via Wikimedia Commons
Thousands of jobs at Carillion which are believed to have been saved previously are back at risk.
BGIS, a Canadian firm, has pulled out of a deal to acquire a portfolio of Carillion facilities management contracts. The said agreement would have safeguarded 2,500 roles in the United Kingdom.
The said deal fell through after customers, the majority of which are entities of the public sector, were unprepared to transfer the contracts across to BGIS.
BGIS said that it was “disappointed” it was not able to agree on terms following their announcement of a conditional deal on the 14th of February.
Gord Hicks, the chief executive of BGIS, stated: “We are continuing to pursue opportunities to grow our global business into the U.K. and welcome continued dialogue with prospective customers as we build out our platform for future growth opportunities.”
An Insolvency Service spokesperson stated: “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.”
On the 15th of January, Carillion fell into liquidation due to the weight of massive debts. The Official Receiver of the government is running the insolvency of the company, assisted by PwC, a special manager.
To date, 1,458 Carillion jobs have been lost, 8,216 have been saved, and another 7,500 employees are currently being maintained by the government to deliver private and public sector services.