Troubled VAR Firstnet Solutions owes creditors up to £3 million, has had its bank account frozen and administration looks likely.
According to an email sent out to creditors, Barclays has frozen Firstnet’s bank account and the company is poised to enter into administration.
The email from company directors confirmed that Firstnet Solutions had submitted a ‘notice of intent to appoint an administrator’ on January 19, before extending that notice on February 2.
Firstnet Group owes between £900,000 and £3.3 million in liabilities, according to Companies House and credit checker DueDil. The firm is now facing a series of legal battles after leaving partners and former employees out of pocket.
According to sources familiar with the matter, as many as 11 members of staff have walked out after the entire workforce went without pay in January. At least three have told PCR that they are now seeking an employment tribunal to recover unpaid wages.
And yet the amount owed in unpaid wages is just a drop in the ocean when compared to the huge outstanding payments owed to suppliers. Details emerged last month of a £48,777 county court judgment (CCJ) served to Firstnet in January. Two additional suppliers have subsequently told PCR that they have CCJ orders pending, both for sums in excess of £15,000.