Carillion crisis: Fear and uncertainty grips supply chain companies
Scores of firms have been ringing a Wolverhampton-based helpline set up to aid businesses hit by the collapse of Carillion.
The construction and services giant, with its headquarters on the city's ring road, was placed in complusory liquidation on Monday, leaving thousands of supplier and sub-contract companies in limbo.
A taskforce was set up in the city to provide support and the Black Country Chamber of Commerce launched a helpline for affected small firms.
Chamber policy officer Dan Turner said: "There is a lot of worry, fear and uncertainty and the lack of clarity around the situation does nothing to mitigate that.
"The firms that contact us are often cautious of saying to much, and certainly don't want to talk publicly or to the Press.
"They are concerned about the reputational damage of revealing they are part of the Carillion supply chain, and its impact on their business.
"For those involved with Carillion the biggest concern is if they are going to receive payment. That goes for both private and public contractors; there is a general feeling of confusion and concern.
"Our understanding is that after the liquidation process there may only be 5p or even 0.5p in the pound left for companies owned money by Carillion. Having to give that bad news to companies has not been very pleasant. But hopefully we can offer some support.
"In some cases it is just offering people a voice to talk to, rather an an automated message or some generic response.
WATCH: Express & Star business editor Simon Penfold analyses the fallout from Carillion's collapse
"We are also in conversation with the Black Country Growth Hub about what financial support can be offered to firms, and we will be hoping to signpost people to them at some stage soon.
"We launched the helpline at noon on Monday and we have been getting around 10 to 15 calls a day. It is patchy and comes in peaks and troughs.
"It is a mixture of recruitment firms and others offering help or even work places and the firms in the Carillion supply chain.
"They are worried about the impact on the finances of their businesses. Mostly they are all waiting for a bit more information, but that is scarce at the moment.
"PwC, which has been appointed the special manager of the liquidation, is being very spare with the information it releases, even to business support organisations like ourselves.
"The biggest problem is the lack of information, but we understand that decisions can't be made quickly in a liquidation like this."
It is estimated there could be 30,000 firms affected, either supplying Carillion or working as sub-contractors. The company had extended its payment terms to 120 days last year as it struggled to stave off financial woes and the bill for unpaid work could be up to £1 billion.
Companies seeking information or help over the Carillion collapse can call the helpline on 01902 912 322, or email carillionhelp@blackcountrychamber.co.uk
