Wed, 24 Feb 2016 | ADMINISTRATION
A heavy round of redundancies has taken place at London-based Powa Technologies, the $2.7 billion (£1.94 billion) tech startup that went into administration late last week, reports the Financial Times.
Administrators from Deloitte were brought in on Friday 19 February. They have since made 74 employees from the company’s UK operations redundant. A representative from Deloitte said: “It had not been possible to continue running the company at its current capacity.”
Rob Harding, Partner at Deloitte, added: “We are talking to a number of potential buyers and looking to implement a sale as soon as possible.”
Thompson Investments was rumoured to have shown interest in buying Powa Technologies, according the company founder, Dan Wagner. However, Deloitte has declined to confirm any sale.
Powa was founded in 2007 and has created mobile payment products. However, the distressed business had struggled to generate enough sales with the founder Dan Wagner telling staff last year that the company was “basically pre-revenue”.
Trouble began after mobile commerce company had been struggling to pay staff and suppliers in recent months. It also missed the January payroll, according to the Financial Times. Powa’s lead investor, Wellington Management, then called in its loans earlier this month and appointed Deloitte as administrators.
Powa Technologies is headquartered in London, and has other offices based in the US, Europe and Asia. Deloitte said the company had 311 staff across the world before the latest round of redundancies had taken place.
View the latest UK businesses in administration.
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