500 jobs in jeopardy after IT firm goes into receivership

HUNDREDS of jobs could be in jeopardy at a series of firms linked to the Calyx Group IT company after the firm was put into receivership.

In a statement confirming the news, a spokesperson for the Kavanagh/Fennell insolvency practice said the firm had been placed into receivership as the debt on its balance sheet was in excess of its annual turnover of approximately €90 million.

As a result, the 500 staff working with the business group in the Republic, Northern Ireland and Britain may now see their jobs put at risk.

The Calyx group, which supplies managed ICT services from operations in Britain and Ireland, will be traded as a going concern while a buyer of the business and assets is sought.

The parent company and its subsidiaries were placed into administration on September 3, leading to the appointment of Tom Kavanagh as receiver to its branches in the Republic.

Geoff Rowley and Phil Armstrong of FRP Advisory LLP have been appointed to the same posts in Britain and the North and will oversee the restructuring of the firm there.

They said the Calyx Group is carrying a debt on its balance sheet “in excess” of its annual turnover, adding that “the group went into administration after it was unable to repay a secured creditor”.

According to a statement from FRP Advisory, the administrators are looking for a buyer of the business, but as yet, no redundancies have been made.

“We’re hopeful of finding a trade buyer,” said Mr Rowley. “While we undertake this exercise, the business will continue to run as normal, with no interruption to customer service.”

Calyx Group employs more than 500 staff. The business has been trading under the Calyx brand since 2002, following the management buy-out of the voice, data and training businesses of Alphyra Plc.