On 22 August, it was announced that Manchester-based company, DataCentred, had gone into administration.
Both restructuring and selling of the business and its assets are now being considered by the newly-appointed administrators, who are still searching for the cause of the company's insolvency.
Who is DataCentred Limited?
Based in Media City, Salford Quays, DataCentred is both a physical data centre and Cloud business.
It was founded in 2012 by Dr Mike Kelly, a pioneer in the data centre sector. It was a very popular company, and quickly became part of the Linux Foundation, Helix Nebula Initiative and the government's G-Cloud program.
It has been trading for four years, and recently secured a £1m investment to continue further expansion and increase headcount.
£500,000 was provided by a loan from Barclays. This was matched by existing investors, including the Greater Manchester Combined Authority, in the hope of expanding the OpenStack infrastructure.
Why did it fall into administration?
Many were shocked by the move into administration, as DataCentred has seen some prominent client wins in the last few years. Their OpenStack software is currently used by the London School of Economics, HMRC and Lancaster University.
Despite these noteworthy clients, the company became insolvent. The administrators, Anthony Collier and Geof Rowley from FRP Advisory, are still to determine the main cause of the change in the company's fortunes:
"We are currently starting our preliminary investigation. They are continuing to trade and looking to sell the business.
“In terms of understanding the background, that is something that will take a couple of days to untangle.”
While the administrators try to ascertain the cause of insolvency and determine their next course of action, DataCentred continues to trade and all 15 members of staff are still working for the company.
The administrators are said to be exploring restructuring options, and are seeking buyers for the business and its assets as part of an ongoing marketing process.
“Over its four year trading history, DataCentred has earned a well-deserved reputation for its expertise and has supported a significant network of clients.
“We are marketing the business and assets for sale and we encourage any interested parties to make early contact”.
Collier continued to say that the “business has had some challenges”, he went on to say that Manchester being a digital hub “gives us some optimism that we can salvage the business from this position”.
It seems that despite falling into administration, all is not lost for this well-known firm. Whether the administrators decide to sell or restructure, DataCentred is likely to continue in one form or another.