SunGard said its UK arm will enter administration on surging energy costs and a stalemate with landlords regarding rents.
The colossal global data management company, which specialises in cloud-based services and physical data centres, was heavily knocked back by the pandemic.
SunGard Availability Services UK, which employs almost 300 people and has large clients including JP Morgan and the Home Office, appointed Teneo Restructuring in an attempt to rescue it.
The entity was in talks with landlords to slash rent from the start of the year, but their refusal coupled with rising energy prices piled pressure on the company’s finances, Sky News said, citing sources close to the matter.
Teneo obtained short-term funding to trade the business, whilst talks with prospective buyers were thought to be taking place imminently.
The funding "provides a platform to advance the company's discussions with landlords, to optimise cost and space, and with customers, to pass through increased power costs,” Benji Dymant, Teneo joint administrator, told Sky News.