A major employer in Wellingborough has made at least 170 workers redundant after ceasing trading.
Computer resellers Misco UK, whose headquarters are in Darby Close on the Park Farm Industrial Estate, is retaining just 30 of its 330 UK staff.
200 of those are based in Wellingborough meaning at least 170 people have lost their jobs there, with the expected 30 retained staff based either in the town or the company’s warehouse in Greenock, Scotland.
Joint administrator and partner at FRP Advisory 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 cashflow after the sudden tightening of credit insurance terms.
“The UK business had moved to a system of supply chain outsourcing of stock, with increasing levels of automation to enable greater efficiencies with suppliers and distributions and overall lower cost.
“However these efforts came at a time of heightened competition from other globalised online retailers which have eaten heavily into the margins of even established IT resellers like Misco.”
The company has a sales office in Weybridge, Surrey, and forms part of Misco Europe which continues to trade with operations in Italy, Spain, the Netherlands and Sweden.
Mr Rowley said that those who had lost their job were their ‘immediate priority’.
He said: “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.”
Despite an effective turnaround plan being in place to improve cash-low, credit insurers significantly tightened their terms which put further pressure on working capital at a time when competition from other global online retailers began to increase.
As part of efforts to recapitalise the company, the directors initiated a marketing process to protect the UK business as a going concern and engaged in constructive discussions, but once firm offers failed to materialise, the pressure on cashflow was unsustainable.
Following the receipt of winding-up petition from HMRC, the company was left no viable option other than to seek the protection of administration.