Catering body pledges support for contractors rocked by Carillion crisis

Catering trade association Ceda has offered its support to foodservice sector companies affected by this week’s liquidation of construction giant Carillion.

Ceda, which represents a large portion of the UK’s kitchen house, service companies and project specialists, is a member of Build UK, the leading representative organisation.

Through this relationship, Ceda expects to be able to feed into the discussions that Build UK is having directly with the government. Build UK officials met with the Secretary of State for Business, Energy and Industrial Strategy as soon as the liquidation was announced on Monday.

Ceda director general Adam Mason said the association will represent those companies in the foodservice sector affected by Carillion’s collapse.

“As the fallout from the Carillion collapse dominates the political agenda, our unique position within the Build UK membership places us at the forefront for any foodservice business now facing uncertain times,” he said.

“We are a direct route to help and support and this week to date we have been in regular communication with members, but we call on any business in the sector, Ceda members or not, who are, or feel they may be, affected by the Carillion crisis, to get in touch.”

Earlier this week, FEJ revealed how The Federation of Small Businesses wrote to Carillion last year over its ‘poor’ payment practices. Some of its members claimed that they were being made to wait 120 days to be paid. It is estimated that around 30,000 companies gained work from Carillion.

Mr Mason added: “The immediate concerns and actions are with those businesses in our sector directly affected by the Carillion liquidation, but beyond that we will continue to work with Build UK to highlight that the construction business model needs to change as current conditions, payment terms and operating margins are not sustainable.”

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