Sharechat Logo

Wynyard administrators make more than half staff redundant

Monday 31st October 2016

Text too small?

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."

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 ongoing 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 Nov 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 21.5 cents when the company eventually went into administration.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Tourism Holdings first-quarter US vehicle sales margins shrink 40%
Venture capitalists split on govt picking winners
21st October 2019 Morning Report
Kiwi dollar steady as markets await Brexit developments
Domestic AGMs, multi-national earnings to provide economic insights
MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors

IRG See IRG research reports