Although not a household name like HMV the UK subsidiaries of IT firm 2e2 have gone into administration. The impact will be felt widely as many companies rely on their products and there are likely to be thousands of creditors who were resellers of their services and who might now not get paid.
Founded in 2002, private equity-backed 2e2 swiftly built itself into a near £400m turnover IT reseller/integrator via a string of acquisitions including HP and Oracle partner Compel and, more recently, Morse for which it paid £70m for in 2010. It employs about 2,000 staff.
Earlier in the month the debt-stricken firm let go of its Chief Operations Director Mark McVeigh in favour of former Logica and Colt exec Maggy McClelland, and bringing in turnaround expert Lynn Mawdsley. However, this has not prevented the appointment of administrators FTI as the business ran out of funding.
Joint administrator Simon Granger said: "We are working closely with management and other key stakeholders to ensure the continued provision of business critical services to the group's customer base.
“In parallel we are exploring strategic options for the UK business and have commenced a disposal process for the overseas subsidiaries,” he added.
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In other news a string of smaller businesses have gone into administration in the few days.
Salford-based mechanical and electrical services contractor H Barnes Sons is in administration.
Manchester Airport ME firm BrownCo (Electrical Engineers) is also in administration
Whitequay Limited which operates Seat, Skoda and Suzuki dealerships in the south of England, hit trouble last week, according to administrators.
Administration is not the only option open to businesses that are in financial difficulty although if the debt to the bank is unmanageable then it is often the bank that calls in the administrators. If you have been paying back debt but are struggling with unsecured debts such as trade creditors or HMRC then it can pay to look at other options such as a CVA or a time to pay arrangement