Orchard & Shipman is set to lose a £60m contract to house asylum seekers in Glasgow.
Serco, which awarded the company the subcontract, said it was in talks with O&S on the possible transfer of its subsidiary to Serco. It said it was looking for the best way to continue to deliver housing services to asylum seekers.
There have been allegations that some of the property offered was substandard. Serco said all property provided by O&S complied with Home Office requirements.
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