Carillion. Close to going bust.

Stuart_C said:
That’s the issue, it’s not just the 50k employees, it’s the hundreds of subbies and their employees they’ve already got screwed down to the last ha’penny on 120 days payment terms that will suffer the most.

Yet all of the shareholders and execs have had their feed from the trough already.

Another epic swindle.
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its utterly abhorrent that a business could get itself to this state considering how much it has had in its favour over years, as you say feel sorry for the little guys at the end of the chain who ultimately will be the ones screwed over (along with the taxpayer who will end up doing some bailing out)
 
fundy said:
its utterly abhorrent that a business could get itself to this state considering how much it has had in its favour over years, as you say feel sorry for the little guys at the end of the chain who ultimately will be the ones screwed over (along with the taxpayer who will end up doing some bailing out)
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Using bullying tactics and greed is how they’ve got to where they are today. All of those responsible who have had a feed from the trough need to be brought to book.

Carillion will have to be bailed out by the government, although it’s amazing how and when this money tree turns up to save the Tories backsides ( remember the deal with the DUP) yet it’s invisible to provide sufficient front line services.
 
They've gone under.

This will have a massive impact on the UK construction industry, it's not just the 50k carillion employees.
 
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Sad day for the trade, this is also on the back of a Scottish sawmiller going bust last week too, a family business going for over 70 years with over 90 jobs lost in central Scotland
 
Stuart_C said:
They've gone under.

This will have a massive impact on the UK construction industry, it's not just the 50k carillion employees.
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Its the subbies I feel for,some of who have probably done 4 or 5 months work without any money. It's tough to come back from that.
 
Awful for subbies and suppliers. I worked all my days in the construction industry and never understood how 120 day payment terms would be worth working for?
 
chrisd said:
Awful for subbies and suppliers. I worked all my days in the construction industry and never understood how 120 day payment terms would be worth working for?
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When you've got no other option you just try and make it work. Carillion controlled that much work that they could strangle the sunbird into submission.
 
bluewolf said:
When you've got no other option you just try and make it work. Carillion controlled that much work that they could strangle the sunbird into submission.
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I know, but the Government has been pushing for faster payments and even bringing in legislation to penalise late payment and then don't insist on their main contractor in the building sector paying promptly.
 
Stuart_C said:
That’s the issue, it’s not just the 50k employees, it’s the hundreds of subbies and their employees they’ve already got screwed down to the last ha’penny on 120 days payment terms that will suffer the most.

Yet all of the shareholders and execs have had their feed from the trough already.

Another epic swindle.
Click to expand...

And the companies that lost work to Carillion, perhaps on price. There are loads of direct and indirect consequences. Pretty grim for everyone, awful for the employees and as you say, its dreadful for the sub-contractors too in this kind of thing. Also slightly surprising to see in a culture where public contracts require so much pre-qualification information to be submitted which is part of a due diligence process on behalf of the end client.
 
chrisd said:
I know, but the Government has been pushing for faster payments and even bringing in legislation to penalise late payment and then don't insist on their main contractor in the building sector paying promptly.
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The govt are all hot air on this subject. For public contracts it should be part of the contract that all payments, throughout the process and right down the line, are made to a govt agreed timescale. Ideally that would be 30 days but 45 at worst. The fact that they don't shows how little they really understand or care about this issue.
 
Lord Tyrion said:
The govt are all hot air on this subject. For public contracts it should be part of the contract that all payments, throughout the process and right down the line, are made to a govt agreed timescale. Ideally that would be 30 days but 45 at worst. The fact that they don't shows how little they really understand or care about this issue.
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The Government DO understand and care about the issue. The problem is that they understand and care more about the top bosses than they do about the workers. Just sit back and wait for the Journo's to dig up the backhanders and donations.
 
It won't go down well with some - and it is by far not the one and only issue for Carillion, possibly not even the main one - I do not know - but Brexit and the associated uncertainty has been very damaging to Carillion. This is not my opinion - I have a friend very close to the heart of Carillion and was told this directly.

And just for background on the main UK aspect of it

https://www.theguardian.com/busines...vote-for-orders-fall-government-eu-referendum

Now you might not think that UK government should be pushing so much work Carillion's way that they become dependent upon it - but that is how it has become.

Questions to be asked of the government in respect of awarding major contracts to companies who are seriously struggling and CEO resigning; multiple profits warnings (Ah - was Chris Grayling at all involved - ah yes - HS2 and other rail contracts...well I never - what a surprise)
 
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SwingsitlikeHogan said:
It won't go down well with some - and it is by far not the one and only issue for Carillion, possibly not even the main one - I do not know - but Brexit and the associated uncertainty has been very damaging to Carillion. This is not my opinion - I have a friend very close to the heart of Carillion and was told this directly.

And just for background on the main UK aspect of it

https://www.theguardian.com/busines...vote-for-orders-fall-government-eu-referendum

Now you might not think that UK government should be pushing so much work Carillion's way that they become dependent upon it - but that is how it has become.

Questions to be asked of the government in respect of awarding major contracts to companies who are seriously struggling and CEO resigning; multiple profits warnings (Ah - was Chris Grayling at all involved - ah yes - HS2 and other rail contracts...well I never - what a surprise)
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Allowing debts to spiral to circa £1b is not a brexit issue, its a mismanagement issue. They've had financial issues for years, even pre-brexit.
 
Ironically enough, the boss of Carillion is an advisor to Theresa May on corporate responsibility. The bosses have also already taken steps to protect the £4m of bosses bonuses before putting the business into liquidation.
 
I've just read an article that many hedge fund companies have made 10's of millions by short selling on them since 2015. One of these companies (Blackrock) has had George Osbourne as a consultant for the last year....................mental.
 
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