Jobs across South Wales are at risk after a social housing maintenance firm went into administration.
Exeter-based Connaught has appointed KPMG as administrators after failing in a last-ditch attempt to secure further funding from its banks.
The company has been in crisis since June after it warned government spending cuts could hit its business to the tun of £400 million as councils deferred projects to upgrade housing stock.
In a statement to the stock exchange, Connaught said: “Following extensive discussions with the group’s secured lenders, it is now clear that sufficient support would not be extended to the group as a whole to enable it to continue trading as a going concern.
“As a consequence, the board is saddened to announce that it is in the process of appointing partners from KPMG as administrators of Connaught plc and its subsidiary, Connaught Partnerships Limited, which comprises its social housing division.”
Connaught has a training division in Caerphilly where people can gain qualifications through apprenticeship schemes and it employs more than 400 people directly in Caerphilly, with a number of sub-contractors relying on its business.
Caerphilly MP Wayne David has expressed his concern for workers employed by the firm.
Main story in Caerphilly Observer National News section: Connaught appoints administrators after failing to secure new funding