BEGBIES TRAYNOR administrators make more than 500 staff redundant at collapsed maintenance business The Kinetics.
Following reorganisation earlier this year, the company was unable to determine the solvency of its four subsidiaries; due to late payments received, and following the removal of its credit insurance the withdrawal of supplier contracts.
Gary Lee, Dean Watson and Neil Mather, partners at Begbies Traynor, were appointed joint-administrators of the company which employs 550 staff across 5 sites.
Lee said: “A range of factors have impacted upon the group’s cash position and uncertainty over the financial position of the group has meant many of its contracts with customers have been placed elsewhere, curtailing the group’s ability to trade on.
“Accordingly, the vast majority of employees have had to be made redundant, with a small skeleton staff retained to finalise the affairs of the group companies,”
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