Construction giant, Carillion, who are the contractors for the new Royal Liverpool Hospital have collapsed in to administration after being unable to reach a bail out deal.
Carillion stated that it has “no choice but to takes steps to enter compulsory liquidation with immediate effect”.
The troubled company employs over 20,000 people across Britain and is currently in the process of building the new £335M Royal Liverpool hospital which is currently atleast one year behind schedule.
Carillion were also responsible for building Liverpool FC’s main stand. They came under criticism for being involved in the blacklisting of workers.
The construction giants are key suppliers to the government and has contracts with the rail industry, education and the NHS.
Philip Green, chairman of Carillion, said: “This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.
“Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.
“In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.”