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460 jobs lost on North Tyneside as Utilitywise goes into administration

UTILITYWISE Credit: ITV Tyne Tees

It has been confirmed that 460 people on Tyneside have been made redundant after energy broker Utilitywise went into administration.

The firm which is based at Cobalt Business Park, helps businesses buy gas and electricity. It said it had been unable to raise enough money to cover costs of its debt.

The company said an initial plan to sell the business had fallen through.

It was revealed last month that the broker needed £10m to stay in business.

Credit: ITV Tyne Tees

After attempts to secure investment from shareholders, the company put itself up for sale at the end of January.

In a statement on the Utilitywise website on Wednesday, the company said the formal sale process for the group "did not result in any offers".

It was also revealed the Administrators have taken the decision to cease trading for the Enterprise division immediately, while the sales process for UTW’s subsidiary companies would continue.

After extensive discussions with the Group’s largest shareholders and other stakeholders, the directors of UTW were unable to raise sufficient funding to cover trading losses and implement the turnaround strategy required by the Enterprise business.

Furthermore, the formal sale process for the Group announced by the board on 28 January 2019 did not result in any offers to acquire the Enterprise division, or the Group as a whole.

Consequently, the directors of UTW sought the appointment of Administrators at UTW.

The Administrators have taken the decision to cease trading for the Enterprise division immediately, but are continuing the sales process for UTW’s subsidiary companies.

– Utilitywise Plc statement