Around 70 more jobs are understood to have been lost in Ipswich following the appointment of administrators at insurance broker Ignition Select.
The development comes just days after a related company, insurance leads and contact centre firm Call Connection, went into administration with the loss of more than 130 jobs.
And it brings the total number of jobs at risk in the town to more than 350, with the East of England Co-op having announced plans last week to close its distribution centre on the Boss Hall Business Park, affecting around 170 employees.
Ignition Select and Call Connection are legally separate but both businesses have their registered office at Saxon House in Cromwell Square, Ipswich, and, according to records at Companies House, they are both majority owned by entrepreneur Graeme Kalbraier.
It is understood that Ignition Select has been working with BTG Financial Consulting, the corporate restructuring arm of professional services firm Begbies Traynor.
A spokesman for the firm said: “Gary Shankland and Kirstie Provan of Begbies Traynor (London) LLP were appointed as joint administrators of Ignition Select, the Ipswich-based insurance broker, on July 18, 2017 by the directors of the company.”
He added that he was not able to provide any further information “at this time” but it is understood that most, if not all, of the Ignition Select workforce – thought to number about 70 – face redundancy.
A number of people contacted Archant’s office in Ipswich by phone and email saying they had been made redundant from Ignition Select while others took to social media.
Ignition Select describes itself on its website as specialising in “great value car insurance cover” but also provides allied products such as breakdown cover, excess protection and motor legal expenses insurance.
Staff at Call Connection were informed last Friday that their company would cease trading with immediate effect. A total of 134 employees were made redundant, with a skeleton staff being retained to assist the administrators, from BDO LLP.
BDO said that recent financial difficulties had put “significant strain” on Call Connection’s working capital position and efforts to find a buyer had failed.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here