Are businesses too big to fail?
As the failure of outsourcing giants Carillion and Interserve creates waves throughout the industry, Pádraig Floyd looks at what other businesses can do to prevent being caught in their wake
The collapse of Carillion in January 2018 marked the largest construction bankruptcy in British history. The inquiries into the collapse pointed towards the board as the chief architects of the disaster, with auditors also in the firing line. Carillion, perhaps due to the importance of its contracts and the size of its revenues, had been considered too big to fail. But that was of no comfort to the 43,000 people employed to provide services across the defence, education, health and transport sectors, who subsequently found their jobs at risk.
What went wrong?
The collapse has been a common tale in this market for a long time, believes Henry Stannard, partner at OC&C Strategy Consultants.
This is an extract from the Business & Management Magazine, Issue 275, June 2019.
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