Tue, 29 Mar 2022 | ADMINISTRATION
Administrators are holding talks with potential buyers following the collapse of Sungard Availability Services UK, the UK arm of international data management firm Sungard. The UK business appointed administrators from Teneo Restructuring after succumbing to issues relating to the COVID-19 pandemic, energy costs and rents.
The company specialises in both cloud-based services and physical data centres, but saw demand for the latter significantly impacted by the COVID-19 pandemic. The company’s clients include several large organisations from both the public and private spheres, including the likes of the Home Office and JP Morgan.
Sungard Availability Services had reportedly been in talks with landlords since the beginning of the year over potential rent cuts, but talks reached an impasse with landlords refusing to agree to improved payment terms. The company had also been impacted by soaring energy costs.
Teneo Restructuring has now been appointed as administrator to the UK business. The administrators have obtained interim funding to enable the company to continue trading and are now holding accelerated talks with potential buyers, who have not yet been identified.
In a statement to Sky News, joint administrator Benji Dymant said that the appointment of Teneo and the short-term funding would provide “a platform to advance the company's discussions with landlords, to optimise cost and space, and with customers, to pass through increased power costs".
Dymant added: "The ability for the business to continue to trade in the medium to long term, either to enable a rescue of the business as a going concern or to deliver individual asset sales, will be reliant upon burden sharing from both customers and landlords alike.”
View the latest distressed UK businesses here.
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