Liquidation looms for 2e2 as administrators make 627 redundant

By Sooraj Shah
06 Feb 2013 View Comments

Hackett explained that on the conference call on Tuesday, the administrator told the employees in question that they were being made redundant immediately, without any consultation, notice, redundancy payment or even payment for their work in January.

Further reading

"We were being told that we would not be paid for January, they gave us some detail about how we could claim some money back from the government, but the question and answer question was particularly colourful," he said.

"The first person said this is illegal, which it is - there needs to be a consultation. Later, someone asked some good questions which were, are you still paying the people remaining? Are you still paying key suppliers? And what is the justification of why you are prioritising them over us? We never really got a satisfactory answer to that," he added.

Hackett admitted that perhaps he and other employees should have been more alert to the possibility of problems within 2e2.

"For those on the sales side, in hindsight maybe we should have been more alert to this. There were issues like getting to credit lines with certain suppliers that should have raised concerns. However, we had also received assurances that payroll would always be paid and that there would be no issue there," he said.

"The FT had said that the quality of financial information was so bad in 2e2 and that does not surprise me; generally, the organisation was not as well run as it could have been on the financial side," he added.

The former 2e2 architect went on to explain that Simon Burton was the financial director who left in late December "almost certainly not on his own accord", and that bizarrely two restructuring experts were brought in in the first week of January.

"I know that my boss met with one of them who was looking at the financial aspects of the business and they talked about what 2e2 was up to. So [the two experts] definitely did do work and attend, but I understand they were canned at the same time [as the 319 employees who were first made redundant], so it's just an odd situation," he said.

But Hackett feels sympathy for other employees, who may be in a worse situation than himself.

"There were people from the call who were seriously asking what they were supposed to eat this month, people are in different situations," he said.

Reader comments
blog comments powered by Disqus
Windows 10 - will you upgrade?

Microsoft has made an early version of Windows 10 - its next operating system - available for download. The OS promises better integration and harmonisation across platforms, including mobile and desktop. Will your business be upgrading?

35 %
31 %
14 %
20 %