This is big news, Carillion are a huge construction company and facilities management operation:

[Link]

The government will get involved as Carillion touch rail, PFI and outsourced services. Thousands of jobs are affected as are pensions.

Looks like they overreached themselves by taking on risky contracts.

"That was fun and to round off the day, I am off to steal a charity collection box and then desecrate a place of worship.” - Smokey, The Selhurst Arms, 26/02/02

Much of this is still a concequence of the 2007 crash. In order to survive in the 5 years after it they took on many long term contracts at highly competitive rates. These were risky but necessary to keep them afloat at the time.

There's still a staff shortage in the construction industry which has
got worse recently. As the market had picked up wages have risen even more than expected. Partially to do with the reduction in net migration. As a result these companies are making a loss trying to fulfill many of their long term contracts.

Many government organisations have realised they are now getting a great deal from their longer term contracts so have extended them as much as they possibly can.

None of this seems to be being reported as it doesn't go along with the Union's argument about private sector companies making big profits of the government. Particularly from PFI's. Clearly Carillon haven't made these big profits and the banks they took loans of for the PFI's are now closing in.

There a few other factors at play. Such as clients in the middle East refusing to pay or delaying payment because they are oily gits.

There are still many other big players and rapidly expanding companies who'd be looking at taking on their contracts. It will probably cause some delays and price increases but should be too much of a long term issue.

Agreed.
Many (somehow?) forget that every investment carries risk.

Buy Litecoin.

Weren't they supposed to be the chosen company to build our new main stand?

TaxiMark
Sheffield Wednesday Fan
Posted 23 February 2013 - 07:49 PM
I don't mind palace to be fair. Much better club than tinpot Charlton and Brighton

Quite. Their dividend policy was a disgrace and showed flagrant contempt for their staff and other stakeholders.

Chris Grayling is being made to look more of an imbecile week by week. First the East Coast mainline debacle and now this. The man should lose his job over this one. He's cost us taxpayers a lot of money with his negligence.

This is why the monopolies and mergers (now competition) commission should stop letting large companies consume so many of their competitors.

It sounds even worse when you realise that Carillion going into liquidation, could read as "Tarmac, Wimpey, Alfred McAlpine, Mowlem, John Laing etc have gone into liquidation."

I feel sorry for the subcontractors, they'll lose the most.

Optimistic as ever