The UK arm of neutral vendor and workforce management company the Albany Group is believed to be on the verge of collapse because of financial difficulties. An administrator has yet to be appointed, though it has been confirmed that Albany Technologies has ceased trading.
The news follows previous reports regarding the Group's admission that a £3 million factoring facility for three of its UK companies had been withdrawn, though Albany Technologies was not thought to be affected.
In a letter sent to contractors this week, director Shelley Eccleston confirmed that the UK arm is likely to go into administration, explaining that the aforementioned withdrawal of the Group's banking facility caused damage to the Albany brand.
"The directors have determined it is no longer viable for Albany Technologies to continue trading," he stated, though the position of recruitment agencies and contractors in the event of administration has not been clarified.
It is expected that, as soon as an insolvency practitioner is appointed, creditors will be contacted regarding claims for payment of outstanding monies - including those of unpaid wages. If a return for the company's creditors is not achieved, it is likely to be placed into liquidation.
Albany's clients include GSK, Carphone Warehouse and Boeing.
