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Housing firm warns of job losses
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Workers at social housing giant Connaught have been warned of job losses after the group collapsed into administration.
But KPMG - appointed as administrators for the main company, its subsidiary Connaught Partnerships and Connaught Technical Solutions - said it hoped to transfer the majority of staff to other providers along with ongoing contracts.
Exeter-headquartered repair and maintenance specialist Connaught employs around 4,400 staff at the social housing arm, which is the largest division placed in administration.
Regional bases affected by the decision include those in Leeds, where Connaught Partnerships is based, Glasgow, Bromsgrove, Crawley and Essex.
More than 4,500 staff work at its other subsidiaries that have not been placed in administration - Connaught Compliance and Connaught Environment, which employ 1,800 and 2,700 respectively.
The administration of its main division has left around 280 contracts for councils and public sector bodies up in the air, as well as caused uncertainty for suppliers and contractors.
But KPMG said it was seeking to transfer contracts and was working with councils and housing associations to "minimise disruption to the public". It is also reviewing staff requirements at the head office and will announce any job losses as soon as possible.
Connaught was thrown into turmoil after warning in June that Government spending cuts could blow a £200 million hole in revenues over this year and next.
Bosses at Connaught held crunch talks with its lenders, led by taxpayer-backed Royal Bank of Scotland, and other potential financiers in a bid to keep the company afloat.
But it told investors late on Tuesday it was left with no option other than to start the process of administration after failing to secure further financing.
