Administrator KPMG has declared its intention to continue trading Connaught while it tries to sell the stricken social housing maintenance firm’s contracts.
Richard Heis, Richard Hill and Richard Fleming of KPMG were this afternoon appointed joint administrators to Connaught plc today.
Connaught plc is made up of three main operating businesses:
- Connaught Partnerships – which provides maintenance services to social housing associations and employs around 4,400 staff at a range of locations across the UK;
- Connaught Environmental – which provides environmental support services and employs around 2,700 staff at a range of locations across the UK and at a smaller operation in the US; and
- Connaught Compliance - which provides health and safety compliance advice and employs around 1,800 staff at a range of locations across the UK.
Mr Heis, Mark Firmin, Brian Green and David Costley-Wood have been appointed joint administrators to Connaught Partnerships Limited, headquartered in Leeds.
They said in a statement: “The administrators of Connaught Partnerships Ltd 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.”
Mr Heis said: “Following the group’s recent trading statements, a substantial review of the group’s businesses and cash flows was carried out by the board and its advisers.
“Notwithstanding the Group’s bankers providing an additional £15m overdraft (announced on 29th July), it became clear that the Partnerships business was no longer sustainable and had a substantial cash requirement significantly beyond its available lending facilities. The directors therefore have placed Connaught plc and Connaught Partnerships Limited and one smaller company into administration.
“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.”
Connaught Environmental and Connaught Compliance are not in administration and continue to trade normally.