Employee MBO Saves Cable Firm From Closure
Senior employees at Wakefield based Cable-Talk Communications have bought the business out of administration following intense negotiations with administrators.
The firm was established in 1996 and installs high tech fibre optic and voice cabling for IT and telecommunications systems across the UK. It has offices in Wakefield and London and was placed in the hands of joint administrators David Wilson and Julian Pitts of leading business rescue, recovery and restructuring specialists Begbies Traynor on 13th August 2010.
Recent contracts included work for Lloyds TSB, the Department for Work & Pensions and HM Revenue and Customs.
Cable-Talk had grown to employ 13 salaried staff and a bank of experienced sub-contractors. The cancellation of major projects, including a large contract with HMRC led to its failure last month. Due to the early sale of the business, the administrators were not required to make any redundancies.
“Fundamentally, Cable-Talk was a sound business with a great reputation for installing hardware and cabling and was a key supplier to some very specialist technology projects,” said joint administrator Julian Pitts.
“The employees, who are one of the business’s key assets, are well-placed to safeguard their own livelihoods, and were able to put together the best offer to buy the business,” he added.
A company source said; “We have worked very hard to help build a great business with a very good reputation for the quality of our work, and to be able to take control of our future is a massive opportunity for us all.
“We have been able to ensure complete continuity and have continued to deliver every project despite the administration, and it is business as usual in many ways,” the source added.
The business will continue to trade as Cable-Talk and will operate initially from its bases at Calder Park, Wakefield and Merton, South London.
Following graduation from the University of Hull, Julian qualified as a Chartered Accountant with Coopers & Lybrand in Leeds. After a short time with Baker Tilly, in 1989, together with David Wilson, he established Wilson Pitts, a specialist independent practice dealing with all aspects of insolvency and corporate recovery work. In 2006, the Wilson Pitts practice was acquired by Begbies Traynor where Julian is now the Joint Regional Managing Partner for the North-East region.