Insolvency firm Vantis is in administration
THE future of around 75 jobs at accountants and insolvency practitioners Vantis were in doubt this morning after the firm itself fell into administration.
The AIM-listed company - which has sites in Middlesbrough, Darlington and Hartlepool - had been in talks with potential investors about taking a stake in the business to reduce its debt pile.
However it has now been placed in the hands of FTI Consulting.
Vantis, which earlier this month was forced to suspend share trading due to a lack of funds, said: “The directors have vigorously explored every available option to reduce the level of debt in the group.
“However, given the lack of progress to date with these options and the group’s ongoing funding requirements, the board has today appointed Chad Griffin and Simon Granger of FTI Consulting as joint administrators of the group.”
It is unclear whether the company’s continuing financial problems will force it to make redundancies at its Tees Valley sites.
Vantis refused to rule out speculation that it was preparing to sell part of its business to rival firm Tenon, which has offices in Sunderland. Tenon declined to comment.
Vantis is looking to renegotiate lending terms with its debt providers.
In the six months to October 31 last year, the company recorded pre-tax losses (after exceptional costs and interest) of £10.7m following a £6.5m loss in the year to April 30, 2009.
Earlier this month CEO Paul Jackson and head of business recovery Nigel Hamilton-Smith resigned as directors of the group which had net debt, excluding finance leases and loan stock of £40.4m, on October 31.
The company would not comment on its current level of debt.
Vantis employs more than 1,000 people in the UK and offers a range of advisory services spanning accountancy, corporate finance, business recovery and asset finance.
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