Rubicon Corp forced to call in administrators
The UK insurance outsourcing company Rubicon Corporation has appointed Kroll Corporate Advisory & Restructuring Group as administrators after experiencing trading difficulties.
Established in late 2000 by the former chief executive of Eastgate Assistance Max Carruthers and ex-GE Insurance UK managing director Bradley Brandon-Cross, Rubicon offers business process outsourcing services to the insurance industry.
The group - which employs 520 staff in a variety of UK locations - has a turnover of approximately £10mn but an aggressive expansion policy left the company with what Kroll described as a "significant financial burden".
Last year, the Glasgow-based private equity fund behind Rubicon, Penta Capital, replaced Carrruthers and Brandon-Cross with a new chief executive, Chris Sammes.
In a statement this morning (25 January), Kroll partner Andrew Pepper said: "The Rubicon Corporation is a well-known business process outsourcing company in the financial services industry and has grown quickly in the past five years.
"Due to the level of ongoing losses it is vital that a timely sale is secured and we are currently seeking buyers for the businesses. We appreciate that this is an uncertain time for employees and ask them for their support while we review the options for the businesses going forward. We will keep them informed of all notable developments."
Pepper, together with colleagues Peter Saville and Fraser Gray, were appointed joint administrators to the group. The companies will trade while they seek purchasers for the businesses.