Certain of 2e2's UK subsidiaries have been placed into administration after the integrator failed to secure additional funding for the business.
Simon Granger, Chad Griffin and Simon Kirkhope of FTI Consulting were today appointed as joint administrators of 10 2e2 companies in the UK, including 2e2 Holdings Limited.
Buyers are being sought for its international businesses, including those in Ireland, Spain and the Netherlands, which continue to operate as normal, FTI said in a statement.
"We are working closely with management and other key stakeholders to ensure the continued provision of business-critical services to the group's customer base," Granger said.
"In parallel we are exploring strategic options for the UK business and have commenced a disposal process for the overseas subsidiaries.
Founded in 2002, private equity-backed 2e2 swiftly built itself into a near-£400m-turnover reseller/integrator via a string of acquisitions including HP and Oracle partner Compel and, more recently, Morse. It employs about 2,000 staff.
News of 2e2's insolvency comes just a fortnight after it announced the arrival of two new top executives, including "turnaround expert" Lynn Mawdsley, who joined as chief financial officer. Former Colt Telecom, BT and Logica executive Maggy McClelland was unveiled as the firm's chief operating officer.
Channel veteran and credit specialist Eddie Pacey said lessons could be learned from 2e2's collapse, calling it an "extremely sad day for the channel"
"I have been expecting this for at least the past five years as they had always just avoided breaching bank covenants," he said.
"The more recent news they had and changes to senior management simply hammered the final nail in the coffin. One cannot go on buying sprees at too accelerated a rate and acquire such humungous debt that simply has no chance of being serviced or paid."
The 2e2 companies in administration are:
2e2 Holdings Limited
2e2 Investments Limited
2e2 Group Limited
2e2 Managed Operations Limited
2e2 Property Limited
2e2 UK Limited
Morse Overseas Holdings Limited
Morse Group Limited
Diagonal Quest Limited
Outsourcer says the size of the operation should be considered before criticising the error that affected 43,000 women
Vendor says a range of its products will be made SD-WAN compatible, with traditional networking 'completely under disruption'
With just a day to go until the 25th annual Channel Awards, we catch up with the SMB Reseller of the Year category sponsor Exertis, to find out why the sector is such a vital part of its business strategy
Analyst predicts spending on Robotic Process Automation will rise XX per cent next year, driven by price decreases