IT applications integrator and reseller 2e2 has entered administration, after weeks of negotiations with investors failed to find a solution for the Berkshire-based firm's £270m debts.
Some 319 UK sales and admin staff have already been let go from 10 UK subsidiaries of the business, while there are claims that pay is being withheld from the redundant staff.
2e2 provides IT managed services and integrated technology solutions across the UK, Ireland, Spain, Benelux, the Channel Islands, the Isle of Man and the US.
The company's remaining 2,000 staff now face the threat of redundancy as administrator FTI Consulting tries to sort out the mess.
"We are working closely with management and other key stakeholders to ensure the continued provision of business-critical services to the group's customer base," said FTI Consulting administrator Simon Granger.
"In parallel, we are exploring strategic options for the UK business and we have commenced a disposal process for the overseas subsidiaries," added Granger.
Founded in 2002, the 2e2 enjoyed a £400m annual turnover at its height as a reseller and integrator, making a series of acquisitions including HP and Oracle partner Compel.
The company's collapse comes only weeks after it announced the hiring of a new CFO, so-called "turnaround expert" Lynn Mawdsley, as well as ex-Logica and BT exec Maggy McClelland as COO.
2e2 had been involved in partnership projects with O2, through whom it was offering technical services to businesses, as well as a deal to supply McAfee enterprise mobility software to telecoms and managed service providers. Both arrangements now hang in the balance.