Michael Horrocks and Craig Livesey of PwC were appointed administrators at The Amulet Group, which owns The Accident Group, after it ran into financial difficulties following a lower than expected claims success rate.
Directors at the Manchester-based business, which ran a network of 35 shops and kiosks, were unable to secure additional funding or insurance capacity resulting in the appointment of administrators.
In a statement, PwC said administrators had to immediately reduce The Accident Group’s cost base, as it was no longer able to write new business.
As a result 2,400 staff were made redundant today. Approximately 200 staff will remain behind to continue to process ongoing claims.
Joint administrator Michael Horrocks said: ‘Despite the redundancies declared we will be advertising the remaining parts of the Group for sale. In the meantime we will work closely with creditors and underwriters to ensure existing claims are handled in an orderly and expedient way.’
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