Carillion, a major British multinational specializing in construction and facilities management, officially went into liquidation following a turbulent financial crisis that saw its debts soaring to nearly £1.5 billion. Founded in 1999 and thriving for years, Carillion was heavily involved in numerous public and private sector projects, including schools, hospitals, and roads, making it a significant player in the UK's construction industry. However, by early 2018, the company faced a severe cash flow crisis that it could not sustain. Despite multiple attempts to secure financial backing and restructure its operations, the situation deteriorated rapidly, prompting the announcement of liquidation.

As a result of the liquidation, around 20,000 employees were left in uncertainty, and numerous projects were halted, affecting a wide range of stakeholders including contractors, suppliers, and public sector clients. The UK government was compelled to take emergency measures to ensure the continuity of critical public services and projects that were dependent on Carillion. The collapse raised serious concerns regarding corporate governance, the management of large contracts, and the role of the auditors in identifying and reporting financial discrepancies.

The fallout from Carillion’s downfall also led to increased scrutiny over government outsourcing practices, as many public services were increasingly contracted out to private firms. Investigations were launched into the practices and decisions of Carillion’s executives, including former CEO Richard Howson, leading to public outcries for reform in corporate regulation. The incident emphasized the importance of transparency, accountability, and financial health in large corporations, particularly those involved with public funds and services.