A British construction giant has been forced into bankruptcy, leaving the future of thousands of Canadian jobs in question.
On Monday, Jan. 15, Carillion Plc, and several of its subsidiaries, entered into an insolvency process known as compulsory liquidation.
“This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years, “Carillion Chairman Philip Green said in a statement.
He explained “huge efforts” were made in recent months to restructure the company.
“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, “Green said.
Britain’s Official Receiver has been appointed the liquidator of Carillion Plc and certain other companies in the group. The Official Receiver will look to maintain operational continuity and continues to trade these companies.
Furthermore, special managers have been appointed by the High Court to help manage the affairs, business and property of the companies.
In Canada, the company employs more than 6,000 people with an annual revenue of about $1 billion.
The company is Canada’s largest road service contractor, and is responsible for 40,000 km of year-round routine and preventative roads maintenance, in Ontario and Alberta.
Ontario’s Ministry of Transportation met with Carillion Canada shortly after the bankruptcy announcement. Ontario Transportation Minister Steven Del Duca said they were told winter maintenance services would continue without interruption.
“Regardless, MTO is continuing to look at all of its options should the situation change,” Del Duca said in a statement. “We will be meeting with Carillion Canada throughout this week and we will continue to provide updates to the travelling public as they become available.”
Alongside road maintenance, the company has worked on the Aga Khan Museum and Ismaili Centre, the Royal Ontario Museum’s Michael Lee Chin Crystal, and the $450 million revitalization of Toronto’s Union Station.
As well, Outland, a Carillion company, provides camp management, catering and maintenance to wide range of industries, such as mining, utilities, forestry, oil and gas.
In an news release, Carillion said it is too soon to say what will happen to other companies in the Carillion Group.
However, Carillion Plc and other companies in the group continue to operate as normal, according to the company.
“Unless advised otherwise, all agents, subcontractors and suppliers should continue to work and provide goods and services as normal, under their existing contracts, terms and conditions,” the company tweeted following its liquidation announcement.