Winning deals until the end

CARILLION bagged £1.9billion of new taxpayer-funded deals despite the Government preparing for their collapse.

The National Audit Office found the construction and outsourcing giants announced a number of public sector contracts after it revealed a black hole in their finances in July 2017.

Yet the Government didn’t raise their risk warning on Carillion to “red” until September.

The company later persuaded the Cabinet Office against upping the threat to “high risk” – which is the most severe level.

The stricken firm had 420 public sector contracts when they went to the wall in January.

According to the report, none of the bodies dishing out the contracts believed they had grounds for disqualifying Carillion’s contracts under procurement rules.

The NAO estimates Carillion’s collapse has left the taxpayer with a near £150million bill.

To date, more than 2300 Carillion employees have lost their jobs, nearly 11,700 have found new work and 3000 are still with the firm.

Tim Roache, GMB trade union general secretary, said: “This report suggests that ministers were working for the company, and not the other way around.” THE fate of budget chain Poundworld and their 5500 workers is hanging by a thread.

A potential buyer for the 355-strong chain has pulled out, it emerged yesterday.

Sources say a number of other suitors are still looking to acquire Poundworld as a “solvent” business.

However, even if that happens, around 100 stores are expected to close through a company voluntary arrangement (CVA), putting 1500 jobs at risk. If no solvent solution is found then the firm are likely to plunge into administration.

Chris Edwards, Poundworld’s founder, is believed to be among those interested in buying bits of the business out of administration.

Poundworld were put up for sale by their private equity owner TPG Capital after suffering heavy losses – up from £5.4million to £17.1million in the past year. The chain were also hit with a £5.7millio charge to cover onerous store leases.

The threat to Poundworld comes as department store chain House of Fraser are poised to announce plans to try and close around half of their stores.

Bosses are putting the finishing touches to a CVA that would see the firm close around 29 of their 59 UK branches, leading to widescale job losses and ripping the heart out of town centres across the country.

The first five months of 2018 have been carnage for the high street, with Toys R Us and Maplin going bust , and New Look, Mothercare, Carpetright and Marks & Spencer among a wave of chains announcing store closures. Stores look likely to close down