Connaught Partnerships administration confirmed
Connaught Partnerships, the Bromsgrove-based subsidiary of social housing group Connaught, has gone into administration. Administrator KPMG said they will continue to trade the business in the short term, but decisions regarding redundancies will be announced as soon as possible.
The administrators added that it was hopeful that the majority of staff will be transferred to alternative providers.
Connaught Partnerships, which also has hubs in Glasgow, Leeds, Crawley and Exeter, employs in excess of 4,000 staff.
Richard Heis, restructuring partner at KPMG and joint administrator 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 29 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 and Connaught Partnerships 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.”
