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GARLANDS GOES INTO ADMINISTRATION

Posted on May 20 2010
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Nick Reed, director, Ian Green, partner and Steve Ellis, partner of PricewaterhouseCoopers LLP (PwC) have been appointed joint administrators. The company's founder, Chey Garland informed staff on Monday.

The company has three contact centre locations at Hartlepool Marina, Middlesbrough and South Shields. It is an outsourced customer contact centre with a blue chip client base, employing 1,158 people – 178 based in South Shields, 621 in Hartlepool and 359 in Middlesbrough.
 
Administrators said a consequence of the company having a number of key contracts terminated by clients, resulted in the directors concluding it was not possible to support continuation of trading, apart from a single contract. All staff apart from around 70 members of staff will run the remaining contract and a small number to assist the administrators in the closure of the business were made redundant.
 
Garlands's clients had included Vodafone, TalkTalk, Siemens and Cable and Wireless among others. The remaining contract is believed to be a public service contract.
 
The firm has been hit hard by the downturn and financial reports to the year to October 2008 show sales fell to £44.3m from £48.5m with profits falling to £476,000 from £2m.
 
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 were unable to identify a viable way forward given the significant deterioration in contract work and high infrastructure costs. As such, they were left with no option than to appoint administrators.
 
"My team and I will focus on working with employees, clients and suppliers to facilitate a smooth and effective wind-down or transfer of operations over the next few weeks.
 
"Our priority is to ensure that all employees made redundant are assisted in processing their claims with immediate effect. We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms. Advice and assistance will also be available from Job Centre Plus.”
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