Connaught go into administration
DOOMED housing firm Connaught, which was in contract with Dumfries and Galloway Housing Partnership, has been taken over by administrators KMPG following a failed attempt to secure funding.
The social housing experts announced they were in difficulty last month with a reputed 230 million of debt from six banks and a list of other ceditors.
Connaught Partnerships employs 4,400 staff and KPMG said staff could be transferred to alternative providers as it looks to sell contracts with housing associations and local councils.
However, the administrators also warned on Wednesday that redundancies "will need to be made" if alternative providers do not take on staff.
Joint administrator Richard Heis said: "Notwithstanding the group's bankers providing an additional 15 million overdraft, it became clear that the Partnerships business was no longer sustainable and had a substantial cash requirement significantly beyond its available lending facilities.
"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."
MP Russell Brown said: "My first thoughts are for Connaught staff who are understandably worried for what the future holds.
"A hundred and fifty local people have their jobs on the line and their lives have been thrown into turmoil. This would be extremely difficult at any time but especially so given the current tough economic climate.
"There will also be major implications for DGHP tenants and people want to know their repairs and essential work will not be delayed."
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Weather for Newton Stewart
Tuesday 22 May 2012
Today
Sunny
Temperature: 8 C to 16 C
Wind Speed: 12 mph
Wind direction: South
Tomorrow
Sunny spells
Temperature: 11 C to 16 C
Wind Speed: 9 mph
Wind direction: South
