Emergency plans as home repair firm put into administration

COUNCILS and housing associations across Yorkshire have insisted there are contingency plans in place to deal with the collapse of social housing repair group Connaught.
By The Newsroom
Published 8th Sep 2010, 10:21 BST
Updated 8th Sep 2010, 11:07 BST

The firm last night announced it was going into administration after earlier suspending trading in its shares.

It has been in turmoil since warning in June that Government spending cuts could blow a 200m hole in revenues over this year and next.

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Its biggest contract in Yorkshire is a 28m deal with charitable housing association Yorkshire Housing Ltd to repair and maintain 12,000 homes in West and North Yorkshire.

David Bolton, property services director at Yorkshire Housing, said contingency plans were in place.

"Our property services teams are currently taking steps to reassure customers that it is business as usual and that work on their homes will continue," he added.

Connaught was contracted by Yorkshire Housing to work on homes across the North Yorkshire areas of Craven, Hambleton, Ryedale, Harrogate, Scarborough, Selby, York and the East Riding and in the West Yorkshire areas of Bradford, Leeds, Calderdale, Kirklees and Wakefield.

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Earlier this year Richmondshire District Council awarded the group a 5m contract to improve properties.

Colin Dales, assistant director for Richmondshire District Council, said the council had been aware of its problems for some time and had been giving the group "low-risk work" so if it did go under the council could get in another contractor to finish the work. "We are making sure that there is no outstanding work and we're keeping tenants up to date," he added.

Connaught also had a longstanding partnership with Hull City Council to carry out repair works across the city.

Coun Carl Minns, leader of Hull City Council, said the authority had been working closely with Connaught and other partners to ensure repairs commitments were met.

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In a statement last night, Connaught's board said KPMG was being appointed administrators for the main company and its subsidiary, Connaught Partnerships Limited; four other subsidiaries are not affected.

It had been in discussion with potential financiers to keep the company afloat since July but these talks had "failed".

Comment: Page 12.

Related topics:North Yorkshire