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Mon October 26 2020

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Redundancies loom for 9,000 Connaught staff

9 Sep 10 Administrators for Connaught have warned that redundancies may “need to be made”, depending on their success in selling on the stricken housing firm's contracts.

Administrators for Connaught have warned that redundancies may “need to be made”, depending on their success in selling on the stricken housing firm's contracts.

After a succession of problems hit the contractor during 2010, Connaught called in insolvency specialists KPMG yesterday.

Administrators were appointed to three Connaught businesses:

  • Connaught Partnerships, which provides maintenance services to social housing associations, includes Connaught Technical Solutions, and employs 4,400 staff;
  • Connaught Environmental, which provides environmental support services, principally comprises the Fountains business acquired in 2009, and employs 2,700 staff;
  • Connaught Compliance, which provides health and safety compliance advice, includes the National Britannia business acquired in 2007, and employs 1,800 staff;

No other company in the Connaught group has gone into any form of insolvency.

A statement from KPMG said: “The administrators of Connaught Partnerships will trade the business in the short term with a view to selling and novating contracts to other providers; collecting debts and working with Connaught's customers, such as councils and housing associations, to minimise disruption to the public.

“The administrators are hopeful that the majority of staff will be transferred to alternative providers. However, to the extent that alternative providers do not take on employees then redundancies will need to be made. Decisions regarding redundancies will be announced as soon as possible.”

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Richard Heis, restructuring partner at KPMG and joint administrator, said: “We will work closely with customers, employees, subcontractors and alternative providers to ensure services are maintained as far as possible and contracts and employees are transferred to alternative providers.”

KPMG said it would continue to provide “such services as necessary to facilitate the trading of Connaught Environmental and Connaught Compliance and the administration of Connaught Partnerships”.

It said both businesses continue to trade normally on a profitable and standalone basis, and that there have been “numerous expressions of interest for both the Compliance and Environmental divisions”.

Any firms interested in various parts of the Connaught businesses should contact James Fagan on 020 7694 1072 or 07775 841133.

A helpline number has been set up to assist creditors with their enquiries: 0844 770 1304.

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