Midlothian-based global technology business Hutchinson Networks has fallen into administration, seeing nearly 100 staff made redundant immediately.
Blair Nimmo and Alistair McAlinden of KPMG have been appointed joint administrators of the firm, which was established in 2011, and delivers IT network services to blue-chip and SME customers globally.
The administrators said they had “no other option” than to make 94 of the company’s 109 staff redundant with immediate effect. The 15 remaining employees have been kept on to help continue trade the network operation centre and provide multi-cloud platform services to customers, while the sale of the business and assets is explored.
The company, which in the first half of 2018 had received a seven-figure growth capital investment – had seen rapid growth that it expected to see continue this year and beyond.
But it instead found itself with “monthly losses and cashflow pressures”, and had launched a process to secure additional funding – but this proved unsuccessful.
Blair Nimmo, joint administrator and UK head of restructuring at KPMG, said: “Hutchinson Networks was a rising star in global IT network deployment. It had invested heavily for future growth and secured attractive contracts for the second half of 2019. Despite the exhaustive actions of the directors to increase sales, reduce costs and attract new investment, the business was unable to continue trading.
“We are exploring a sale of the business and assets and would encourage any interested parties to contact us as soon as possible. Additionally, we are working with Scottish Enterprise and Skills Development Scotland to provide a full range of support to the company’s employees throughout this process.”