550 jobs at risk as Kinetics Group goes bust

Aug. 29, 2011 - PRLog -- Building maintenance company The Kinetics Group, based in Sutton Coldfield, has fallen into administration putting about 550 jobs at risk. Begbies Traynor has been appointed to handle the failure, which also affects four subsidiary companies.

The company attributed its winding up to confusion regarding the solvency of subsidiary companies, delays in payments from important customers and suppliers' refusal to continue trading with the group.

Partners Gary Lee, Dean Watson and Neil Mather at Begbies Traynor have been appointed joint administrators. They will take control over subsidiaries SCP Renewable Energy; Sureway Gas; Kinetics Midlands and Kinetics South.

The administration is likely to affect approximately 550 staff over five sites, said The Kinetics Group.

The company provides building maintenance solutions to about 250,000 social housing properties, schools and public buildings across the UK.

In June this year, shares in Sureway Gas, Kinetics Midlands and Kinetics South were acquired by SCP Renewable Energy as part of a restructuring of the company.

At the same time, the group announced it would halt all of its northern operations.

Since the reorganisation, Kinetics said it suffered with issues including delays in payments and suppliers’ refusal to continue trading with it after its credit insurance cover was removed.

Gary Lee, joint administrator, said: "It is with regret that the group has failed so soon after the restructuring exercise was carried out. 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."

http://www.pwc.uk.com/

Article sourced from:
http://www.insidermedia.com/insider/midlands/55746-550-jo...

# # #

PWC, as a working at height service providing company, has many years experience providing professional services to both the commercial and construction sectors.