Feeds

Contractors lose out in Concept Telecom collapse

Risky business

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

Several IT contractors have been left high and dry by the collapse into receivership of mobile phone testing and contracting services outfit Concept Telecom.

Following on from our story about an ad soliciting buyers for Concept Telecom in last week's FT, a number of contractors in the pay of the company have contacted us to explain their plight.

Nottingham-based Concept turns over £5m a year, according to the FT ad, of which £3.5m comes from contracting out engineers to telecoms clients and £1.5m comes from the company's mobile phone testing division.

As a result on Concept's slide into receivership, around 20 to 30 contractors are unlikely to receive payment in full for work carried out in February and March.

Receivers Tenon Recovery have not returned any of our repeated requests for comment, but we understand that it is telling contractors to submit their February timesheets. Receivers are telling contractors that they could receive 60 per cent of any money due.

So much? Was it really necessary to place the business into adminstrative receivership in the first place? For a potential buyer, the issue diminishes the value of the contracting services portion of Concept's business. After all what is the value of a bust recruitment company with no contracts?

Although the people who work directly for Concept might lose their jobs, contractors are in a worse position financially.

Under UK liquidation laws, staff the taxman and secured creditors (such as banks) are in a preferential position when firms are broken up. Contractors are treated as ordinary creditors and are far less likely to receive any money, two lawyers we contacted for legal background tell us.

Concept Telecom illustrates the greater risk that contractors take when the company they work for gets into financial difficulty.

As one of the affected contractors tells us: "Contractors losing out due to an agency going into receivership is something that is obviously very unpleasant. It's another unnecessary risk for the contractor, however something most contractors have not even heard of happening." ®

5 things you didn’t know about cloud backup

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?