SHAREHOLDERS in the company that runs a number of departments at Bournemouth Borough Council yesterday voted against a restructure plan in a move that will now see the firm go into administration.
The controversial firm, which has debts amounting to £147 million, employs 458 people transferred from the council when the services were outsourced.
A statement from Mouchel said the board would now apply to the High Court for the appointment of administrators.
It said “that no employees, customers or suppliers are expected to be materially affected and all of Mouchel's trading subsidiaries will continue to trade as usual”.
Cllr John Beesley, leader of Bournemouth Borough Council, said: “We still maintain confidence in the capability of the Mouchel Bournemouth Partnership to deliver agreed service improvements and maintain cost reductions for the council.
“Residents can rest assured that the council has strong governance arrangements and risk processes in relation to the Mouchel partnership.
“There are robust measures in place including a strong exit strategy.”
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