Company folds after it has been unable to pay wages to its 85 staff throughout April. Its managing director Dave Carter tells Mobile News closure is “a very sad day”
Orange dealer Geko Direct has gone into liquidation, after experiencing cash-flow issues that meant it was unable to pay staff wages last month.
Geko managing director Dave Carter confirmed the closure of the Telford-based dealer, in a statement issued to Mobile News almost a decade to the day since the company opened in June 2001.
A Geko employee contacted Mobile News last week stating that several staff were told to go home due to financial restraints, leaving many unpaid for April. A further meeting was held yesterday to alert those who remained that the company would be closing. Staff were asked to return today to collect ‘administrative forms’.
Another employee said a meeting had been held on April 27, where staff were told the pay issues were a direct result of non-payments to Geko by its distributor, Mainline.
Mainline was not available for comment at time of going to press.
“The current economic situation is making business incredibly tough to win and the banks are simply not helping as they used to,” Carter said yesterday afternoon.
“We have a great operation here that has a lot of happy customers. You would think that banks would be falling over themselves to help us overcome these short-term issues, but that isn’t the case.
“I would like to pay tribute to everyone who has worked at Geko and to thank them for their support during this difficult time. It is a very sad day.”
Last week Geko director Lacey Webb told Mobile News said that Geko was “moving heaven and earth” to get the problem rectified and was overwhelmed by the support it had received from the majority of its staff.
Geko said the company had 85 employees across locations in Birmingham, Stoke-on-Trent and Telford, down from 139 in 2010 and 162 in 2009.
Geko did have a fourth site in Sunderland, which it closed prior to liquidation.
Mobile News understands Geko staff have already begun applying for new positions at dealers in their respective towns.