Misco UK has laid off around 300 staff after going into administration, following a HMRC winding-up order for unpaid taxes. The administrators have retained around 30 members of staff to help with the wind up of the company and to shift any remaining stock.
A computer reseller in the UK for 22 years, the company’s cash flow problems mainly stemmed from a tightening of credit insurance terms. Earlier this week CEO Alan Cantwell announced that he was launching a last bid effort to save the company by selling it to third party company PCM. However, that appears to have been a bridge too far and the administrators have now taken control of the firm.
Joint administrator Geoff Rowley said: "Misco UK had made great progress since the change of ownership and new investment in March this year but the company’s turnaround plans could not deal sufficiently with the rapid deterioration in cash-flow after the sudden tightening of credit insurance terms. “Our immediate priority as administrators is to work closely with all agencies and services to ensure employees receive every support and assistance at this time. We shall be assisting those staff who have lost their jobs with their timely applications to the Redundancy Payments Service.”
Meanwhile, Cantwell told CRN: “The cashflow issues were brought about predominantly by credit insurers reducing credit limits and HMRC deciding that the informal [payment] agreement didn’t work for them and forcing our hand onto a payment. The two combined just meant we had no choice but to put the company into administration. It is a horrible situation. The discussions [with PCM] unfortunately didn’t come to fruition. I wish everyone the best of luck."