The collapse of the Kinetics Group will no doubt be greeted with rueful acceptance by many in the industry as proof that economies emerging from recession are frequently the time when companies that have battled to survive the worst conditions go under.
Particularly tragic in this instance was the group’s failure to reorganise, following its initial entry into administration in early June. Those who have lost their jobs as a result have been dealt a doubly cruel below, having had hopes raised and dashed in quick succession.
The encouraging news is that a considerable number of employees have been able to transfer to other companies, with hopefully more to follow as contracts are reallocated. The situation regarding the ‘ripple effect’, the effect of the company’s collapse on suppliers and business partners, remains unclear.
This is a timely reminder that we are not yet out of the woods where economic conditions are concerned and many will be glancing nervously around. While some companies report the last two years has made them leaner and fitter, others are no doubt continuing to struggle.
With better news on the housing front, reports of positive growth for the commercial sector and Green Deal contracts beginning to emerge, let’s hope this is the last instance of its kind that we see for some time.