Hundreds of Carillion jobs in doubt as UK contracts deal collapses

Global real estate and facility management services provider, BGIS has announced it is pulling out of an agreement to acquire a large portfolio of Carillion’s former facility management contracts in the UK in a move which could jeopardise hundreds of jobs.

The Canadian group said last month it had entered into an agreement with PwC, in its capacity as Special Manager for the Official Receiver to acquire the contracts.

Financial details of the deal were not been disclosed, however, the agreement would have safeguarded the jobs of 2,500 Carillion employees.

However, the fate of these employees is now in dobt following the breakdown of the deal.

In a brief statement to the markets, BGIS said the deal would not progress because certain closing conditions had not been met.

“While we are disappointed at this outcome, we are continuing to pursue opportunities to grow our global business into the UK and welcome continued dialogue with prospective customers as we build out our platform for future growth opportunities,” said BGIS CEO Gord Hicks.

The agreement would have been one of the largest transfers announced since the Wolverhampton group’s collapse in January.

Under the terms of the transaction, Toronto-based BGIS was to have acquired a portfolio of UK contracts for the delivery of services in the hospital, education, justice, transport and emergency services markets.