National network and power infrastructure provider PowerServe has stopped trading, with the receivers terminating approximately 225 of the 240 employees.
"We appreciate this is a difficult time for all concerned, but unfortunately due to the distressed nature of the business we have been unable to continue to trade as a going concern," said Deloitte's David Lombe, joint receiver and manager of PowerServe Pty Ltd and PowerServe Communications Pty Ltd.
Lombe said he is "currently attempting to sell parts of the business to allow employees to be offered new employment" and liaising with "interested parties to facilitate any possible offers of employment".
CRN contacted PowerServe's Thornton head office in Newcastle and the Arndell Park site in western Sydney for comment, but neither branches answered.
The company listed Nortel, Alcatel, Nokia, Fujitsu, Marconi, Nokia, Ericsson and Huawei as some of its partners. It is unknown if any of the vendors are creditors.
"It is still early days as far as our appointment is concerned and our assessment of the financial position of the companies on behalf of the secured creditor is still ongoing," said Lombe.
The receiver told CRN that he and Deloitte colleague Jason Tracy were appointed receivers and managers of the infrastructure provider on 7 June.
"We had initially hoped to continue to trade the business. However it quickly became apparent that this would not be possible," Lombe said. "This was due to the distressed nature of the business with insufficient working capital to allow the business to continue to trade."
"Our initial view is that the failure of the business is attributable to unprofitable contracts."
The staff terminations took place on 10 June, while the remaining employees continue work to assist the receivers "explore sales opportunities and to realise plant and equipment as well as winding up the affairs of the company".
"We are also urgently assessing whether parts of the business can be offered for sale," Lombe told CRN.
He also said that the director of PowerServe had unsuccessfully sought a buyer for the business for about six months before the appointment of administrators.
PowerServe had operations in Sydney, Singleton, Mudgee, Gunnedah, Hobart and Perth, according to a statement from Deloitte.