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There is no information what will happen with 1,900 other staff at the failed unit
About 2,500 jobs have been saved after administrators agreed to sell the bulk of Connaught's failed social housing group to building firm Morgan Sindall.
The unit employs around 4,400 people in total. The rest of Connaught's 10,000 workers are unaffected by proceedings.
The construction company will pay £28m cash for the company, and take over the majority of its maintenance contracts.
The employees will be transferred to Morgan Sindall's own affordable housing unit, Lovell Partnerships.
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"Around 2,500 employees connected with the ongoing contracts will transfer to Lovell as part of the agreement," said Morgan Sindall in an official statement.
There is no word yet from administrators KPMG as to what will happen to the other 1,900 employees at the failed social housing unit, Connaught Partnerships.
Devon-based Connaught Partnerships specialises in maintenance of social housing.
It went into administration amid allegations that it had bid too aggressively on some contracts from local authorities and housing associations, meaning it won them at a price at which it could not possibly make a profit.
It is unclear whether Morgan Sindall has agreed to take on these reportedly loss-making contracts as part of the deal.
The buyer said that it would pay for the acquisition out of its existing cash reserves, meaning that it won't have to borrow the money.
Morgan Sindall claimed that the new contracts would add around £200m to its annual revenues.
"Our focus now will be to ensure a smooth handover of the contracts and to minimise disruption to essential maintenance services," said John Morgan, the construction firm's head.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
There is no information what will happen with 1,900 other staff at the failed unit About 2,500 jobs have been saved after administrators agreed to sell the bulk of Connaught's failed social housing group to building firm Morgan Sindall.
The unit employs around 4,400 people in total. The rest of Connaught's 10,000 workers are unaffected by proceedings.
The construction company will pay £28m cash for the company, and take over the majority of its maintenance contracts.
The employees will be transferred to Morgan Sindall's own affordable housing unit, Lovell Partnerships.
Related stories
"Around 2,500 employees connected with the ongoing contracts will transfer to Lovell as part of the agreement," said Morgan Sindall in an official statement.
There is no word yet from administrators KPMG as to what will happen to the other 1,900 employees at the failed social housing unit, Connaught Partnerships.
Devon-based Connaught Partnerships specialises in maintenance of social housing.
It went into administration amid allegations that it had bid too aggressively on some contracts from local authorities and housing associations, meaning it won them at a price at which it could not possibly make a profit.
It is unclear whether Morgan Sindall has agreed to take on these reportedly loss-making contracts as part of the deal.
The buyer said that it would pay for the acquisition out of its existing cash reserves, meaning that it won't have to borrow the money.
Morgan Sindall claimed that the new contracts would add around £200m to its annual revenues.
"Our focus now will be to ensure a smooth handover of the contracts and to minimise disruption to essential maintenance services," said John Morgan, the construction firm's head.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.