Edinburgh-based cybersecurity firm Adarma has entered administration, resulting in the immediate loss of 173 jobs across its offices in Scotland and London, and remote workers. The company, which was founded in 2009, had grown to become one of the UK’s largest independent cybersecurity services providers, working with major clients in sectors such as financial services and luxury goods.
The collapse followed a period of declining sales, rising operational costs, and increasing financial losses. Administrators from Interpath Advisory, Will Wright and Alistair McAlinden, were appointed last week and ceased the company’s trading immediately. According to the administrators, Adarma faced sustained margin and cashflow pressures that ultimately proved insurmountable. The withdrawal of support from private equity backer Livingbridge left the directors with no option but to wind down the business after failing to secure a buyer.
Only three of the company’s 176 staff have remained to assist administrators through the process of winding up the business. Those made redundant were informed with no prior notice and were told that they would not receive payment for wages earned in the current month. Employees have been advised to claim unpaid wages through the government’s Redundancy Payments Service - up to £719 per week. The handling of the closure has drawn criticism.
Administrator Will Wright said: “Adarma had built a strong reputation in the cybersecurity sector, but sustained margin and cashflow pressures ultimately proved insurmountable. Like many in the industry, the business faced intense competition, rising operational costs, and a continual need for investment. Given Adarma’s financial position, we’ve made the difficult decision to cease trading.”
