Tim Vance, Charles King and Andrew Dolliver of EY-Parthenon’s Turnaround & Restructuring Strategy have been appointed as Joint Administrators to trading company Extraspace Solutions (UK) Limited and its subsidiary Spatial Initiative Limited.
The administrators said the companies have ceased to trade with immediate effect with the majority of the 100 staff made redundant.
EY said the companies experienced significant losses on legacy contracts that, in turn, placed them under severe liquidity pressures.
It added: “Up to now this has been alleviated by continued shareholder funding however, material further cash funding was required to enable the businesses to continue to trade.
“Despite exploring options to safeguard the future of the businesses and secure additional funding, it has not been possible to raise the funding required to continue trading. As a result, the Directors applied to place the Companies into administration.”
EY stressed that although Extraspace Solutions UK Limited and Spatial Initiative Limited are owned by Cathexis UK Holding Ltd – which is also the owner of ISG – the companies are in a separate corporate structure and the administration of ISG has not been the catalyst for their insolvency.
