Nationwide Building Society and Lloyds have stepped in to save jobs after the collapse of construction group, Carillion, which plunged into administration on Monday.
As part of the move, Nationwide Building Society will employ around 250 contractors from Carillion, providing services such as cleaning and security, while Lloyds Banking Group said it would launch a £50 million fund to aid small businesses which worked with Carillion.
The news of Carillion’s crumble earlier this week, came as a surprise to key creditors, stakeholders and employees, as Benn Richards and Stuart Wilson of national law firm Clarke Willmott LLP explained.
Banks across the UK pulled the plug on the firm which forced the government to step in to guarantee public services provided by the company ranging from school meals to road works.
Nationwide and Lloyds stepping in with help lenders who are offering overdraft extensions and other emergency measures to help firms hit by the collapse of Carillion.
Graham Bushby, RSM’s head of restructuring, advises affected businesses on their options, he said: “There are encouraging signs from the Government and UK Finance that the banks will seek to support SMEs that need assistance with overdraft extensions, payment holidays and fee waivers. Affected businesses are advised to contact their bank as soon as possible to discuss the options.
“Other funding avenues such as invoice financing could also provide a useful facility to help tide companies over in the short term.”