2e2 administrator confirms further job losses as search for buyer continues

News 6 Feb, 2013

FTI consulting announces that a further 627 jobs are to go.

The administrators responsible for ailing IT service outfit 2e2 have confirmed that a further 627 people have been made redundant across its business.

The group, which consists of 10 companies overall, was placed into administration on 28 January, with insolvency practitioners FTI Consulting brought in to oversee proceedings.

More than 300 of the company’s 1,442 staff were made redundant with immediate effect, but FTI has now confirmed that a further 627 jobs have also now been cut.

In a statement, Simon Granger, an administrator at FTI Consulting, said the job losses were regrettable.

“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,” said Granger.

“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, resulting in the loss of 627 jobs.”

The administrators are understood to have broken the news to staff via a conference call, and have published a letter confirming their dismissal on 2e2’s website.

Today’s announcement is in stark contrast to a statement put out by FTI Consulting last week, which said it had received a “significant number of expressions of interest” in parts of 2e2.