Vale had been appointed by Birmingham City Council to look after parks and open spaces in Hodge Hill and Erdington for the next 10 years. But an emergency council cabinet meeting was told that the firm had been let down by its bank.
The cabinet meeting on 13 March agreed two last-minute deals to ensure that the green spaces would not be left without a contractor.
The current contracts end next Friday (27 March) and councillors were forced to make an immediate decision last week to combat any service disruption. Glendale has been appointed to run parks in Erdington and Quadron Services has won work in Hodge Hill.
Council deputy leader Paul Tilsley said: "Vale Contract Services informed the council that they would not perform the contract because they were unable to raise the finance."
The two contracts are among 12 grounds maintenance deals for Birmingham, worth a total of £19.7m.
The council's in-house company has been awarded grounds care contracts for strategic parks and golf courses plus for the Northfield and Edgbaston constituencies.
Sutton Coldfield and Perry Barr parks will also be maintained by Glendale, while Quadron has won work covering Hall Green, Ladywood, Selly Oak and Yardley.