UK call centre group goes into administration

Garlands, based in the north east, 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, and it employs 1158 people - 178 based in South Shields, 621 in Hartlepool and 359 in Middlesbrough.

As a consequence of the company having a number of key contracts terminated by clients, the directors have reached the conclusion it is not possible to support continuation of trading, apart from a single contract. Unfortunately, all staff apart from a number required to run this contract and a small number to assist the administrators in the closure of the business have been made redundant.

Redundant employees a priority

Nick Reed, director and joint administrator at PricewaterhouseCoopers LLP, 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 company's board was unable to identify a viable way forward given the significant deterioration in contract work and high infrastructure costs. As such, the board was 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."

The administrators, who are tasked with forming plans to either put in place a financial restructuring to rescue the company, or to sell the business and assets to produce a better result for creditors than a liquidation, or where neither of these can be achieved, simply liquidate assets and distribute the proceeds to secured or preferential creditors are working closely with employees affected by the closure of the business to ensure they receive the support they need during this difficult time to assist with their claims for redundancy and other compensatory payments.

"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," Reed added.