More than half the workers at defunct storage consultancy Glasshouse Technologies have been chopped after administrator KPMG failed to find an investor to secure the business as a going concern.
Glasshouse simply ran out of cash and called in the receivers late last month just days before it was due to defend itself against a winding up petition at the High Court, brought by HMRC over unpaid VAT bills.
South coast-based integrator Bell Microsystems, as expected, has picked up a "significant majority" of the customer base, KPMG confirmed, though this is subject to punters giving the thumbs-up.
Rob Croxen, joint administrator and partner at KPMG, told us it had been talking to several service providers culminating in a deal with Bell.
"Not only does this agreement save 49 jobs, but represents a very good outcome for creditors and customers alike," he said.
The customer base and debtor ledger appear to be the main assets KPMG was charged with selling. As a consultancy, Glasshouse does not leave behind massive debts in distribution.
Sources tell us that the rest of the workforce, close to 70 heads, have been laid off as there is nothing else to salvage that could keep them in gainful employment.
One former staffer who contacted El Chan claimed staff made redundant were owed a month's salary and were trying to get this via the Insolvency Service, "whilst potentially struggling to pay their rents and mortgages.
"For [some] staff, this was no happy ending," he said.
Since last summer Glasshouse UK was run from the US by CEO of the parent company Steve Sharp, with no local leader in place.
The ex-worker accused US management of an "appalling lack of judgment in dealing with HMRC, entirely failing to appreciate…the threat that a winding up order represents to a UK company's reputation and value".
Glasshouse US was unavailable to comment. ®