Council-service firm in administration

MOUCHEL — the company which provides Oldham Council services via the Unity Partnership, has gone into administration.

The UK public infrastructure group, which operates back office, customer contact and some highways services for the council, has already been rocked by government spending cuts and under–performance in certain parts of its operation.

The company’s shares were suspended on Friday after they fell to less than a penny.

But council leader Jim McMahon says while the company still exists, the council’s contract remains.

He added: “If the banks take the company over, the contract is still in place.

“We are monitoring the situation at the moment but if there are any concerns about standards of our services slipping, we will take action.”

Mouchel’s board says it has a new plan to restructure, which would see the company eventually owned by its major creditors, RBS, Lloyds Banking Group, Barclays and management.


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