Backers refused to put up more money for the site, which had amassed only 575 clients. Previously the firm had received Pounds 6.25m in funding following talks with Mercury Private Equity.
Ascot Drummond was the brainchild of chief executive Humphrey Drummond, who won the Venture Capital Report Prize for the concept in 1998. Drummond and co-founders Robert Wright and Ali Hakeem evolved a system where documents were scanned in Dundee and then sent to Pakistan. Employees in Lahore would then complete tasks such as bookkeeping or the preparation of accounts and return the documents via the web.
But in the current dot.com climate, attracting buyers for the company could prove difficult. Administrators from Southampton-based Fanshawe Lofts were called in last week to continue running the business and said they will try and sell the company as a going concern.
So far ten staff have been made redundant plus a number of directors – including Humphrey Drummond.
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.
Kevin Reed discusses whether new accountancy group Cogital can rival the Big Four...and its likely direction of travel