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Monday, 13 June 2011

Kinetics in administration

Kinetics, another company exposed to the social housing sector, has succumbed and gone into administration.  This follows Rok, Connaught and others.  With other "social services providers" such as Southern Cross, the care home operator, in difficulties it appears there is a widespread problem.  Southern Cross has argued it has been a fall in occupancy levels that has hit them the hardest and Kinetics has lost a contract from Westminster Council. 

The administration follows the collapse on Wednesday of Kinetics’ repairs and maintenance subsidiary, DC Group, which was put into compulsory liquidation after it owed £7 million to HMRC.  Seaflame, provider of gas installations, another subsidiary, has also gone into administration with Zolfo Cooper as the administrators.

It is hoped that the majority of contracts will be novated to the new trading companies that are being set up.  In addition it has been stated that many of the jobs will be moved across.  However, the new companies will employ 650 people instead of the 1000 currently and 273 people have been made redundant.

If you are affected by the administration then please refer to our help pages for suppliers and employees

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Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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