British Gas has acquired the gas and electrical compliance businesses, along with their associated assets, from Connaught Compliance for £11.2 million.
It was one of the premier league names in social housing repairs and maintenance until its crash sent shockwaves through the sector. Now administrators are salvaging what they can from Connaught Partnerships’ wreckage, with former rivals picking up the pieces. Mark Cantrell reports
The break-up of crashed Connaught has begun after a deal was reached that will see Lovell Partnerships snap up the majority of its social housing division’s ongoing contracts and associated assets for the knock-down price of £28 million.
KPMG has today appointed administrators to crisis hit Connaught plc and its subsidiary Connaught Partnerships Ltd, which comprises the social housing division.
Leading social housing repairs and maintenance provider Morrison stands ready and willing to offer full continuity of employment to those Connaught employees working on social housing repairs contracts, following the announcement of the administration of Connaught Partnerships.
Embattled Connaught has thrown in the trowel and called in the administrators, meaning thousands of jobs are at risk, after it failed to secure a new financial deal from its backers.
Troubled repairs and maintenance contractor Connaught has suspended trading of its shares in the London Stock Exchange while it seeks “clarification” of its financial position, prompting speculation that it is on the verge of going into administration.
Embattled social housing maintenance provider Connaught has warned investors that it is set to breach its banking covenants and urgently needs more funds if it is to meet the “current and ongoing needs of the business”.
