Jobs at Denman Facilities Maintenance (Denman FM) have been saved after administrators agreed to sell the business, including its assets to Project First. But the rest of the crisis-hit Denman Group looks set to enter liquidation.
The Project First deal will save the jobs of around 175 employees after Reigate-based Denman FM officially entered administration on April 23.
However, Denman Group and Denman Contracting, which entered administration at the beginning of April, have failed to find a buyer despite the efforts of joint administrators Keith Stevens and John Kirkpatrick, from Wilkins Kennedy, the chartered accountants.
According to the last set of accounts filed by Denman Contracting in May 2007 it employed 73 people.
Mr Stevens said: “We have not been able to find purchasers for these companies so they are set to enter liquidation. A number of redundancies have already been made and we are just trying to work out how many staff will be affected.”
“Our team has been working closely with Denman FM to protect the position of this business, its employees and customer base. We are delighted for both staff and future customers that we were able to conclude the sale in what is a particularly difficult economic climate for the refrigeration industry.”
Denman FM’s customer base includes Sainsbury’s, Marks & Spencer, Boots and Somerfield. It will now change its name to Project First Facilities Management.
Mark Stratford, Project First managing director, said: ‘By acquiring a dedicated facilities maintenance business we can now offer a more complete package to both current and potential customers. With this in mind, it is Project First’s intention to invest in all aspects of this new business in order to strengthen its position in the marketplace.”
Project First also confirmed this week it bought Red Kite Refrigeration and Air Conditioning and the company’s HVAC and ducting specialist business Red Kite Air Movements.