London [UK], June 22 (ANI): A Chinese conglomerate which has built hotels for Hilton and Travelodge has abruptly liquidated its UK subsidiaries, trade magazine Construction Enquirer reported.
COVID-19 pandemic is said to be a reason behind the move.
CIMC is a global business with regional offices in the UK, US and Australia and the main head office in Southern China.
The main UK business, CIMC Modular Building Systems and its development arm first set up to promote the modular system have both been placed in voluntary liquidation by managing director Jason Taylor.
According to last published account CIMC MBS lost pound 2.5 million in 2018. During that year it delivered nearly 900 modules creating 1,317 hotel or student rooms.
CIMC has supplied ready-built rooms from a factory in China for more than 10 years. They have been used for hotels, including a Hampton by Hilton at Bristol airport, and student accommodation.
“The impact of the pandemic has been so wide and so deep that it has become impossible to survive without taking some fairly drastic steps,” Enquirer reported citing a source.
“Recovery from this will be a long and challenging journey but we remain confident in our ability to continue to deliver projects and meet our clients’ expectations,” the source said.
“These two major factors, in combination with the global situation, have meant that a number of the UK subsidiaries have become insolvent and been put into liquidation,” it further added. (ANI)