Carillion

About Carillion

Carillion plc entered liquidation on January 15, 2018. Carillion was the second largest construction company in the UK with 43,000 employees. The company had 7 billion in liabilities and only 29 million in cash. Carillion had over-extended on fixed price contracts. CEO Richard Howson resigned in July 2017 after a profit warning. Three subsequent profit warnings followed. The UK government continued awarding contracts to Carillion even after profit warnings. The collapse forced the government to step in to provide public services that Carillion had been contracted to deliver. The House of Commons launched an inquiry. The Pensions Regulator investigated a 2.6 billion pension deficit. The case led to reforms in public procurement and regulation of government contractors.