1. ITV Report

Construction firm Carillion enters liquidation after talks fail

Photo: ITV News Central

Construction giant Carillion has gone into liquidation. The Wolverhampton-based company said it has "no choice but to take steps to enter into compulsory liquidation with immediate effect" after talks failed to find another way to deal with the company's debts.

The government had held talks in attempt to avoid the company going into liquidation but these were unsuccessful.

The firm employs 20,000 people around the UK and has debts of £1.15 billion.

Carillion is a key supplier to the Government and has contracts in the rail industry, education and NHS.

Philip Green, chairman of Carillion, said that the government wiill be providing the necessary funding recquired to maintain the public services carried out by Carillion staff,

The Wolverhampton-based company employs 20,000 people across the UK Credit: ITV News Central

This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.

Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.

In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.

– Philip Green, Carillion chairman