Wynyard administrators make more than half staff redundant
Receiver says high cash burn was limiting prospects of a sale.
More than half the staff at crime-fighting software company Wynyard Group have been made redundant by the company's administrators.
The Auckland-based company went into voluntary administration last week after it gave up on seeking a $10 million loan from one of its major shareholders, the UK's Skipton Building Society.
Some 72 management and staff positions have been shelved in Auckland, Wellington, Christchurch and Dubai. That leaves 60 people at the company. Nineteen people lost their jobs in Auckland, two in Wellington, 41 in Christchurch and 10 in Dubai.
"We have worked through Wynyard New Zealand's operating prospects and its continuing cash burn," KordaMentha partner and administrator Grant Graham said in a statement. "In its existing form, the New Zealand operation is not profitable, which limits our options in terms of sales prospects and processes."
Mr Graham said they had received interest in a number of the group's assets but the lack of cash meant they were unable to maintain the cost of all the existing staff.
"Our priority now is to reduce the cost base and work with parties to realise value for Wynyard Group's intellectual property embedded in various products. Unfortunately, as administrators, we cannot justify incurring continuing costs without confidence in a successful outcome."
A first meeting of creditors is due to be held on November 4.
Wynyard listed on the NZX in 2013, with investors paying $1.15 a share. The stock soared as high as $3.12 in March 2014 but shares were worth just 21.5c when the company eventually went into administration.
(BusinessDesk)
Edwin Mitson
Tue, 01 Nov 2016
Tue, 01 Nov 2016
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Wynyard administrators make more than half staff redundant
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