IT companies go under after losing ‘major’ contract
A group of IT companies have entered administration with almost 50 redundancies after losing a “major contract”.
Paul Dounis and Lindsey Cooper from RSM Restructuring Advisory were appointed joint administrators of Atlas Personal Communications and Purple ICT, both trading as Atlas ICT, on 30 October 2018.
Atlas described itself as an award-winning digital and communications company, providing a range of services including business mobile solutions, mobile and hosted telephony, IT support and online marketing.
According to the administrators, the companies lost a significant contract which resulted in a severe cash constraint which was unable to be made up from other business operations.
As a result of these cashflow difficulties, the decision was made to place the businesses in administration.
Despite a period of marketing the business, the 31 employees who worked between the two firms were made redundant.
“Regrettably, there was no prospect of a sale as a going concern, and all staff have been made redundant,” confirmed joint administrator Paul Dounis.
“We are working with the Redundancy Payments Service to support all employees to process claims as quickly as possible.”
Atlas Business Interiors and Atlas Holdings Limited, the two other companies in the group, also entered administration.
In total, 48 staff across the group have been made redundant.