Evaluating only Carillion’s profile at its peak — without knowing the outcome — the model ranked Acquisition gone wrong as the #1 likely cause. Documented cause: Unit economics.
Full Analysis
Free · no account needed
Documented cause
Carillion was the UK's second-largest construction and services company with £5.2B revenue and thousands of government contracts. It carried £1.5B in pension deficits and £900M in debt. Three profit warnings in 2017 exposed structural insolvency. It entered compulsory liquidation in January 2018 — the largest ever UK trading liquidation — leaving 43,000 employees and thousands of subcontractors unpaid.
Lesson
“Revenue is not solvency. A company with £5.2B in revenue and £2.4B in combined pension and debt obligations is not viable — it is a zombie awaiting a trigger event.”
FAQ
Why did Carillion collapse?
Carillion collapsed in January 2018 because it was structurally insolvent despite £5.2B in revenue. It carried £1.5B in pension deficits and £900M in debt. Three profit warnings in 2017 exposed the situation. It was the UK's largest-ever trading liquidation, leaving 43,000 employees unpaid.