THE COLLAPSE of mega-contractor Carillion has hit Swindon-based Nationwide.

The building society signed a fresh deal with Carillion, which this morning announced it was entering compulsory liquidation, in 2016.

The firm won the seven year contract worth an estimated £350million to provide facilities management services at Nationwide’s Swindon headquarters, 15 corporate offices, data centres and 700 retail branches.

Today, a spokeswoman for Nationwide said: “Carillion’s staff are a vital and valued part of Nationwide and we recognise this is an unsettling time for them.

“While news of the firm’s liquidation has been announced, we are seeking further clarity on the implications for us as an organisation. In the meantime, we will work with the receiver and Carillion to consider the next steps.”

Carillion have a long relationship with Nationwide – with the firm providing facilities support for nine years before the new contract was signed in 2016.

At that time, the firm’s chief executive Richard Howson – who resigned last July, after Carillion’s first profit warning sent its share price tumbling 39 per cent – said that the contract renewal, “demonstrates the success of our long-term partnership with Nationwide and our focus on differentiating Carillion by working collaboratively with customers to deliver an outstanding customer experience”.

Carillion announced this morning that debt talks with the government and lenders over the weekend had collapsed, saying they had no choice but to place the company into liquidation.

The government has appointed accountants PricewaterhouseCoopers as “special managers” overseeing the liquidation of the company.

Staff will be paid by the government, through the "official receiver”.

Philip Green, chairman of Carillion, said: “We have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision.”