What the fallout from Carillion collapse could mean for Sheffield businesses
The news that construction giant Carillion has gone into liquidation, and the impact that will have on many other businesses highlights how even a multinational is not immune to business failure.
The move came after talks between the firm, its lenders and the government failed to reach a deal to save the UK's second biggest construction company.
Kelly Burton, director and insolvency practitioner at Wilson Field has advice for companies in Carillion’s supply chain.
“If you run one of the numerous companies which worked for Carillion and are owed money by them, then the news that PWC had been appointed as Special Managers to oversee the compulsory liquidation of the company must be the fulfilment of your worst nightmares.
“When a large enterprise like Carillion fails it leaves behind it a trail of destruction. The domino effect on the infrastructure of companies which supplied Carillion, can see them then become financial casualties.
“It is highly likely that any money which is owed to your company will not be paid, leaving you with an immediate cash flow problem.
“The thought of your business not being able to pay suppliers, staff wages – even your own mortgage – will be very frightening.
“An unforeseen event such as a bad debt could threaten the very existence of your business through no fault of your own.
“Some companies may be able to weather the storm by raising finance, but often that is not feasible. It also may not be the right decision.
“Is the business still viable without the Carillion work? If not, borrowing money is not the answer, but there are alternative ways of salvaging your business.
“If you are wondering where to start, the best way forward is to take advice without delay.”
Contact Wilson Field on 08009012475 now for a free, confidential chat, without obligation for an outline of what options are available to your business and help on formulating a survival strategy.