A CONTACTOR has collapsed into administration leading to more than 130 job loses in Kirkby.

Fountains Group, which employed more than 2,000 people in the UK, went into administration after it was hit by the economic downturn.

Administrators BDO have sold most of the company to OCS Group saving 1,570 jobs.

But they said “regrettably, it has been necessary to make 446 employees redundant” – including 139 in Kirkby. Some 85 Kirkby jobs will transfer to the OCS Group.

Tony Nygate, restructuring partner at BDO, 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.”

More jobs are going in Essex and Norfolk.

Fountains was part of social housing contractor Connaught Group which collapsed in 2010.

It was originally founded in 1957 as a forestry management business but today provides “integrated environmental services” for companies in the utilities, infrastructure and forestry sectors. 

Its work includes maintaining and painting electrical pylons, managing parks and gardens, graffiti cleaning and forestry management.