Around 2,500 jobs at collapsed firm Connaught were rescued today after administrators struck a deal to sell the bulk of its social housing division.
The £28 million deal with construction firm Morgan Sindall comes two days after the appointment of KPMG as administrators for the main company, and its subsidiaries Connaught Partnerships and Connaught Technical Solutions.
Morgan Sindall said its affordable housing division, Lovell Partnerships, had reached an agreement to acquire "the majority" of the ongoing contracts and assets of Connaught's social housing business.
John Morgan, executive chairman of Morgan Sindall, said: "Our focus now will be to ensure a smooth handover of the contracts and to minimise disruption to essential maintenance services."
Leeds-based Connaught Partnerships, which was the largest division placed into administration, employs 4,400 staff across the UK, so while the deal will be a relief to many, some jobs remain at risk of redundancy.
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