Morrison 'ready to offer jobs' to Connaught staff

Social housing repairs and maintenance provider Morrison says it is 'ready and willing' to offer full continuity of employment to staff at rival firm Connaught after the company announced it was going into administration.

In a statement issued today, Morrison said it is 'ideally positioned as a secure, growing national provider of social housing repairs and maintenance, with a robust and resilient operating network serving clients across Scotland caring for circa 500,000 homes and 4,000 public buildings.'

Guy Wakeley (pictured), Chief Executive of Morrison, said: “This is clearly a difficult and concerning time for Connaught employees facing an uncertain future, but also for Connaught’s clients who are committed to delivering a range of services to their residents and local communities.

"We also cannot forget the local, small businesses who livelihoods and futures are hanging in the balance.

"Here at Morrison, we want to assure these employees and their clients that we are ready to support wherever possible as maintaining job security in these difficult economic times is an overarching priority.

"Now is the time to think about the people affected by this news, and to act decisively to protect vital jobs within the housing sector.”

Connaught's board last night said it was in the process of appointing KPMG administrators for the main company and its subsidiary, Connaught Partnerships Limited.

It is understood they will be formally placed into administration today.

But other subsidiaries including Connaught Compliance, National Britannia Holdings, Fountains Limited and Connaught Environment Limited, will continue to trade as normal.

The debt-ridden Exeter-based repair and maintenance specialist has been in turmoil since warning in June that Government spending cuts could blow a £200 million hole in revenues over this year and next.

Since July, bosses at Connaught have been in discussion with its lenders and other potential financiers in a bid to keep the company afloat.

But these initiatives "failed to reach a satisfactory conclusion in the time available", a statement from the board read.

As a result it became "clear that sufficient support would not be extended to the group as a whole to enable it to continue trading as a going concern".