Blow for Carillion workers as 2,500 jobs are back at risk after Canadian deal falls through

Oliver Gill
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Carillion fell into liquidation on 15 January (Source: Getty)

Thousands of Carillion jobs previously thought to have been saved are back at risk.

Canadian firm BGIS has pulled out of a deal to buy a portfolio of Carillion facilities management contracts. The agreement would have safeguarded 2,500 UK roles.

The deal fell through after customers – many of which are public sector entities – were not prepared to transfer contracts across to BGIS.

BGIS said it was "disappointed" it was unable to agree on terms after announcing a conditional deal on 14 February.

Read more: Learning from Carillion? MP inquiries must shed more light than heat

"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,” said BGIS chief executive Gord Hicks.

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."

Carillion fell into liquidation on 15 January under the weight of enormous debts. The government's Official Receiver is running the insolvency of the firm, assisted by special manager PwC.

To date, 8,216 Carillion jobs have been saved, 1,458 have been lost and a further 7,500 employees are currently being retained by the government to deliver public and private sector services.

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