Computer reseller Misco collapses into administration, sparking 300 job losses
While the UK business has ceased trading, the move will not impact Misco Europe.
Around 300 jobs have been lost at the UK arm of computer reseller Misco after the operation plunged into administration.
The Northamptonshire-based firm has appointed joint administrators FRP Advisory after coming under pressure from Amazon’s incursion into the business-to-business market and ramped-up terms from its credit insurers.
While Misco UK has ceased trading, the move will not impact Misco Europe, which continues to operate across Italy, Spain, the Netherlands and Sweden.
Geoff Rowley, joint administrator at FRP Advisory, said: “Misco UK had made great progress since the change of ownership and new investment in March this year but the company’s turnaround plans could not deal sufficiently with the rapid deterioration in cash flow after the sudden tightening of credit insurance terms.
“The UK business had moved to a system of supply chain outsourcing of stock, with increasing levels of automation to enable greater efficiencies with suppliers and distributions and overall lower cost, however these efforts came at a time of heightened competition from other globalised online retailers which have eaten heavily into the margins of even established IT resellers like Misco.”
Efforts to save the business fell flat after it failed to attract any firm offers.
It is understood that 30 staff will be kept on during the administration process, while nearly all of the 80 jobs at the Greenock warehouse in Scotland will be axed.
Around 200 jobs will also go at the firm’s Wellingborough headquarters, with close to 30 positions being lost at its sales office in Weybridge in Surrey.
Mr Rowley added: “Our immediate priority as administrators is to work closely with all agencies and services to ensure employees receive every support and assistance at this time.
“We shall be assisting those staff who have lost their jobs with their timely applications to the Redundancy Payments Service.”