Shutters come down at 2e2

The failure of administrators to find a buyer for 2e2 has led to large parts of the UK business to be closed and for hundreds of jobs to be lost

2e2 has bitten the dust after administrators failed to find a buyer for the business despite some high profile channel names being linked with a possible purchase.

Last week with Daisy and Computacenter tipped to be among those in talks to salvage 2e2 it looked like a sale might be possible.

But with the reseller owing millions to creditors, £154.4m according to the last filed accounts for the end of 2011, there were ongoing concerns about debt levels.

The administrators FTI Consulting were unable to secure a buyer and have been winding the business down making redundancies over the past few days, with 627 going yesterday, to reduce staffing levels.

Joint administrator Simon Granger from FTI Consulting, said that it had tried to seal a deal but had not been able to get a buyer for large parts of the business.

“Despite a significant number of initial expressions of interest in the UK business, we were unable to conclude a transaction which preserved the business as a going concern," he said.

"Regrettably, this failure to conclude a sale coupled with a significant future funding requirement has resulted in large parts of the UK business being closed," he added.

Not all of 2e2 has closed and Granger said it was still in discussions with customers "to secure the ongoing operation of the Data Centres and Service Desks while alternative options are explored".

2e2's international operations were not included in the administration and continue to operate.


Picture credit: Jupiter Images

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