Cinderella Cleaning Contractors Limited – administration

Cinderella Cleaning Contractors Limited, which provided property maintenance, grounds maintenance, rope access, cleaning and window cleaning services across England, Scotland and Wales, entered administration on 16 November. John Lowe and Yasmin Bhikha of FRP Advisory were appointed joint administrators. Significant pressure was placed on the company as a result of the Covid-19 pandemic and related lockdown. The company continued to trade, albeit at a loss due to restrictions preventing access to client premises to carry out work. Some government institutions such as universities opened after most businesses, resulting in increased downtime. In addition, the company and HMRC were unable to agree repayments terms, and the company was unable to secure alternative sources of finance. Immediately upon their appointment, the joint administrators effected a pre-pack sale of part of the business and assets of the company to Elev8 Access Platform Limited, a connected party to the company. 35 employees were transferred to the purchaser, while 36 were made redundant prior to the administration. HSBC holds a fixed and floating charge debenture over the company’s assets, but it has been repaid in full after having applied set-off in respect of funds held in the company’s bank account.