Lancashire-based debt advice company Fairpoint has announced it is calling in administrators.
The firm, which employs around 200 people at its Adlington headquarters, was recently given a £5m lifeline by Doorway Capital Ltd.
But today it said although the facility would enable its subsidiary Simpson Millar to continue to trade, “ongoing support for the Group’s subsidiaries outside of the Legal Businesses is made more difficult due to the existence of the onerous lease on the Group’s head office which has an annual commitment of around £1m per annum for a further four years.”
It addded: “As a result, and following detailed discussions and the evaluation of a number of options, the Board has concluded that the holding company of the Group, Fairpoint Group plc, is no longer able to continue trading as a going concern and has filed notice of intention to appoint administrators.
“Unless financial circumstances change, and in accordance with statutory requirements, the Board intend to appoint administrators within 10 business days.”
Estimates put Fairpoint’s net debt at the end of 2016 at around around £19.9m .
The consumer professional services company had already announced “structural changes” likely to result in job losses.