Tag: Firstnet

Firstnet Solutions has confirmed that it has entered liquidation and that a terrible 2017 was what finally did the Leeds-based VAR in.

Founded in 2011, the outfit said that it saw challenging trading conditions, high hardware supply costs, cash flow pressures and an “underlying lack of a commercial leadership to support the business”.

The company suffered a significant decline in sales, and margins then followed suit. Managing director of Firstnet Solutions David Cusworth said that repeated commercially misguided decisions have cost the company significant revenue and ultimately led to its failure.

“This is a  sad and devastating time for us all, our colleagues, customers, partners and suppliers… We will continue to work closely with our professional team and third-party advisers in this process.”

The company’s woes became public in January when details of a £48,777 county court judgment (CCJ) were revealed.

At the time the company spun the issue as something in the midst of being resolved and was overlooked due to the Christmas break.

Firstnet opened its first datacentre last March – a 400-rack facility which was previously an NHS datacentre. The data centre was supposed to give Firstnet its cloud, colocation and disaster recovery services, with the firm already outsourcing these capabilities to third parties.

It is believed that expenditure for the high-spec kit for its data centre was instrumental in Fastnet’s downfall.

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.