Sirius Corporation cuts half of its staff after collapse

"Interested parties" circling as administrator, FTI Consulting, looks to sell business

ASX-listed IT services firm Sirius Corporation has sacked half of its staff following its collapse due to a lack of funds, administrators say.

The Melbourne-based company fell into the hands of administrators, FTI Consulting, on August 30 who have since let go of “about 50 per cent” of the 35 staff in a company restructure before it is sold either in parts or as a whole.

FTI senior managing director Quentin Olde said the business failed due to a lack of funds required to take the business forward.

“The business is continuing to trade and we are exploring options to sell the business as a going concern, but the business didn’t have sufficient funds to allow it to operate in the structure it was in,” he said.

He said some staff had been let go and some had been made redundant under the restructure.

“There’s obviously been some rationalisation of the operations,” he said. “The business had in total about 35 staff and about 50 per cent have been let go.

Olde indicated that the three main components of the business: IFMA, Pinnacle and Sirius Managed services were likely to be sold in the near future.

“We have interested parties looking at all three components of the business, both separately and together,” he said. “At this stage we expect the businesses to continue as going concerns and be sold.”

The business, which specialises in asset management software, had struggled for a number of years and posted a $2.2 million loss in the 2011/12 financial year.

It looked to be on the mend earlier this year with revenue of $6 million in FY 2012 – up 60.6 per cent to the previous year - the signing a resale agreement in Canada and the renewal of its managed services contract with Qantas.

Tags FTI ConsultingASXadministrationsoftwareSirius Corporation

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