Begbies Traynor to be appointed administrator of £100m-turnover firm
Social housing and renewables contractor Kinetics is to be put into administration, according to a source close to the group.
Building understands that business recovery firm Begbies Traynor is to be appointed administrators following the firm, which employs 643 staff, ceasing trading at 1pm today.
In June £100m-turnover Kinetics shut down its northern operation with the loss of 40% of its then 1,000-strong staff, saying it was to refocus its business around the installation of renewables and exit the social housing maintenance market.
At the time the chief executive, Chris Cheshire, said it was able to retrench to a solid £70m gas servicing and renewables business. It also restructured the business putting a number of subsidiaries into administration, and was forced to write-off £4m in bad debts.
Kinetics’ difficulties follow the high profile loss of a lucrative contract with Liverpool Mutual Housing, which decided to take its maintenance service back in house.
A company source said: “Kinetics will be closing down all its operations from 1pm today. Although there has been some support from clients going forward the company has not been paid for a number of contracts and these debts have forced the company to close”