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Insolvency proceedings begin for call centre firm

Published on 18 May 2010 under category: legal

A call centre firm in the north of England is undergoing insolvency proceedings.

Garlands Call Centres has bought in PricewaterhouseCoopers (PwC) to administrate the insolvency process after the company found it could not continue trading.

The business employed 1158 staff to service its client base, which PwC describes as "blue-chip".

A small number of staff have been retained for the purpose of servicing one contract and managing the closure of the business.

Figures released earlier this month by the Insolvency Service found that the number of businesses going into administration had decreased by almost a fifth (17.8 per cent) on a year ago.

However, many firms could be experiencing a lag effect, which could mean calling in insolvency lawyers.

On the decision, Nick Reed, director and joint administrator at (PwC), said: "Garlands Call Centres has experienced very challenging trading conditions and more recently received notice from a number of key clients of their intention to move their customer service work.

"The Garlands' board was unable to identify a viable way forward given the significant deterioration in contract work and high infrastructure costs."

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.