Feeds

Contractors lose out in Concept Telecom collapse

Risky business

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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." ®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.