Subbies and workers fury as Kinetics fails for second time

Grant Prior 11 years ago
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Subcontractors and more than 600 workers are outraged after housing maintenance specialist Kinetics went bust for the second time in as many months.

The Enquirer revealed on Friday that the firm had ceased trading leaving 600 staff out of work and a string of trade contractors holding worthless invoices.

The firm first went into administration last month when 273 staff were laid off.

But original administrator Zolfo Cooper arranged a prepack deal with a company called SCP Renewable Energy for the salvageable parts of the business.

The firm continued trading under the Kinetics name after shutting down the northern operations and focusing on the Midlands and South were it had a £70m turnover.

The company was run by the management team led by chief executive Chris Cheshire and backed by a private equity group.

The Enquirer understands that Kinetics owed £8.4m to HM Revenue & Customs and £5m to subcontractors and suppliers when it first went down.

Now it has failed again another raft of trade contractors are owed cash for work carried out during the last four weeks and staff have not been paid all their wages.

One worker said: “We are owed money and the whole situation stinks.

“One minute the firm has been saved and the next minute it has gone pop again.”

An angry subcontractor said: “How on earth can a deal be done to buy a firm out of administration then it fails again within weeks?

“It’s another kick in the teeth for those working for Kinetics and we need an inquiry into what’s actually happened here.”

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