No takers for remaining Connaught contracts
Published: 15 September, 2010
CREWE: Administrators have ruled out the prospect of finding buyers for Connaught's remaining five social housing maintenance contracts.
The Daily Telegraph cites sources close to negotiations that the contracts were "heavily loss-making" and no interest from third parties had been received after talks with Enterprise Plc over Connaught's contract with Norwich City Council, one of its biggest, broke down.
The other unsold contracts are with Arun District Council, Raglan Housing Association, Southern Housing and Town & Country Housing.
Connaught Plc and Connaught Partnerships, the social housing division, went into administration last week. Management blamed the problems on public spending cuts. However, the difficulties in offloading the Norwich contract provide further evidence that the Connaught may have been bidding too aggressively for contracts.