Jobs lost as facilities management firm Cinnov8 changes hands in pre-pack deal

A pre-packaged sale has saved around a quarter of the jobs at collapsed facilities management company Cinnov8.

Of the the 41 staff at the firm, 11 have been retained and the remaining 30 made redundant in a deal arranged by Sheffield-based insolvency practice Wilson Field.

Cinnov8, which operated premises in Dewsbury, Aylesbury, Swansea and Braintree, provided services ranging from security and cleaning to catering, building maintenance and plumbing.

It also offered services such as furniture storage and distribution and logistical management, with a client list that included the Ministry of Justice, Post Office, Royal Mail and other blue-chip names.

Cinnov8 was incorporated on June 28 last year and started trading after its business and assets were acquired, on August 20 2018, by Amaryllis Group Holdings Limited.

But according to Wilson Field, the company inherited many of Amaryllis’ overheads and commitments, including payroll and rent.

Cinnov8’s cashflow came under pressure as a result. A small number of high-value customers were lost due to lack of confidence in the business, with lenders later withdrawing their support.

Its directors sought advice from Wilson Field and insolvency practitioners Kelly Burton and Lisa Jane Hogg were appointed as joint administrators.

Kelly said: “Cinnov8 struggled with cash flow after inheriting many of the overheads and costs of Amaryllis Group Holdings.

“At the time of our involvement we were unable to save all 41 jobs but did manage to preserve employment for 11 employees, mitigating preferential claims for such as wages, holiday and redundancy.”

Cinnov8’s business and assets were acquired by Patriot Group Investments Limited, which is associated by a common director.

Leeds law firm Clarion provided legal advice and services, with Charterfields acting as valuers.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →