Outsourcing firm in talks to save itself

OUTSOURCING giant Interserve has held rescue talks in a bid to avoid a Carillion-style collapse amid £500million debts.

The construction and management firm employs 45,000 people in the UK.

It builds and maintains government buildings and provides services from asbestos removal to flood barrier repairs, as well as school and hospital meals.

It has a turnover of £3.2billion, 70 per cent of it from the government.

But it has continued to lose cash since March, when it agreed a prior rescue deal, despite lucrative Middle East contracts.

Its share price fell to a 30-year low last month.

Possibilities looked at by the firm and its advisers included “options to bring new capital into the business and progressing the disposal of non-core businesses”, the firm said.

A spokesman added: “The fundamentals of the business are strong.”

The Cabinet Office said: “We monitor the financial health of all of our strategic suppliers..”

Carillion collapsed in January, at a cost to taxpayersof £148million.

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