Type
Bankruptcy
Country
United Kingdom
Region
North East;
Location of affected unit(s)
South Shields, Hartlepool, Middlesborough
Sector
Administrative Services
Office Administrative, Office Support And Other Business Support Activities
Activities Of Call Centres
82.2 - Activities of call centres

1,088 jobs
Number of planned job losses
Job loss
Announcement Date
10 May 2010
Employment effect (start)
10 May 2010
Foreseen end date
10 May 2010

Description

Garland Call Centres has gone into administration with 1088 job losses across 3 sites in Hartlepool, Middlesborough and South Shields, effective immediately. Administrators PriceWaterhouseCoopers LLP (PwC) said that trading was no longer viable following the end of key contracts. Garlands has retained one contract and about 70 employees are to stay on to work on that contract and help the company wind down. A statement from Garlands said: "The appointment of an administrator follows decisions by a number of Garlands' largest clients to move their outsourced customer service activity to other centres, many in low wage countries including Asia and Africa."

It also lost many large broadband and mobile operator clients. Chief executive, Chey Garland said: "I am absolutely devastated by the course of events. The North East is losing a world-class contact centre business - one that took 30 years of hard work to build and just 18 months of economic recession to destroy. My heart goes out to all the people who have worked so hard to make Garlands a success and who will now lose their jobs and face hardship through no fault of their own. The management has fought tooth and nail to save the company and the support we've received from our staff and business advisors has been truly outstanding."


Sources

  • 10 May 2010: BBC Website

Citation

Eurofound (2010), Garland Call Centres, Bankruptcy in United Kingdom, factsheet number 70553, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/70553.