(UPDATE 12:42. Just received confirmation all jobs at Fountains Environmental have been lost on the Island. Uncertain who will provide service to the IW council, parish and town councils now. Perhaps an opportunity for Islanders? Altered headline to reflect this.)
Perhaps you’re like us and have seen vans around the Isle of Wight with ‘Fountains’ written on the side of them.
This has caused us a confusion that has, until this morning, gone unspoken – Are there really that many fountains on the Isle of Wight that they need their own department/vans?
News has broken today that clears that little question up, but sadly also includes the news of ten job losses for the Island.
Fountains Environmental Ltd are in fact part of the Fountains Group which employed over 2,000 people UK wide. They have recently passed into administration. Parts of the group, including Fountains Environmental Ltd, have just been taken over by another company, OCS Group.
The current impact on the Island is unclear, with people telling VB that the Fountain employees that clean the Island toilets have had all of their equipment taken away from them. If it will be returned after the take-over is unknown.
£600k+ Council supplier
Fountains has had quite a significant supplier relationship with the Isle of Wight council.
Over the period of a year and three quarters (April 2010 – Dec 2011) the council has spent £667,659.16 with Fountains Environmental Ltd. Six of those periods are shown on our sister site, Armchair Auditor (background).
It’s understood that Fountains had the contract to clean toilets around the Island and do beach cleaning. Rather confusingly, the council has described them as supplying services for – Coast Protection; Other Highways maintenance; Public Con – General (was Attendance); Public Realm contract gaps; Routine Repairs Other Roads; Routine Repairs Principle Roads; Structural Maintenance Other Roads and Structural Maintenance Principle Roads.
Ten job loses
We’ve been in touch with administrators, BDO LLP, who tell us, “There will be 10 redundancies on the Isle of Wight”, following the deal.
We’ve held off running this story in an attempt to get more information on this, like how many positions will be saved on the Island. As we haven’t back on this (Update at top), we’re now running on what we have and will continue to await a reply.
More details on the deal
BDO also sent us this extra detail about the deal
Fountains Group was one of the UK’s leading integrated utilities and infrastructure contractors and employed over 2,000 staff. The Joint Administrators secured the sale of the majority of the contracts and assets forming the business as a going concern to OCS Group, the international business outsourcing and facilities management company with UK headquarters in Crawley. 1,570 Fountains Group employees will transfer to OCS Group as part of their purchase of the business, but regrettably, it has been necessary to make 446 employees redundant.
Tony Nygate, BDO business restructuring partner, said: “We are pleased to have concluded the sale of the business to OCS Group, preserving more than 1,570 jobs. A sale of Fountains Group was the best option to secure the future of the business, which has been exposed to the difficult economic climate. Today’s announcement enables the business to move forward confidently and on a secure financial footing.”
