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Adarma's administration affects over 100 workers

Over 100 employees at Edinburgh's Adarma are left unpaid after the company goes into administration.

July 22, 2025 at 01:01 PM

Leading Edinburgh firm collapses leaving 'over 100 workers without pay'

The collapse of Adarma has left many workers without salaries, drawing attention from legal advocates.

Edinburgh's Adarma collapses leaving over 100 employees unpaid

Adarma, a cybersecurity firm based in Edinburgh, has gone into administration, affecting over 100 of its employees. Founded in 2009, the company was recognized as one of the largest independent cybersecurity services in the UK but succumbed to financial difficulties last week. Lawyers from Thompsons Solicitors Scotland have taken up the case for the workers, who allege they were kept in the dark about the company's issues. Paul Kissen, a senior lawyer, stressed the workers' right to compensation despite Adarma's failure. Administrators from Interpath cited severe financial pressures, competition, and rising costs as key factors leading to the firm's collapse, and they are now prioritizing support for affected employees as they navigate redundancy processes.

Key Takeaways

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Adarma went into administration leaving over 100 workers unpaid.

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Thompsons Solicitors represents affected employees seeking compensation.

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Employees reported being kept unaware of the company's financial distress.

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Administrators cited persistent cash flow issues as a cause of collapse.

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Legal advocates are emphasizing the need for better protection for workers.

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The fallout may impact the cybersecurity employment landscape significantly.

"Yet again loyal hard working employees have been led up the garden path by a company that knew it was in trouble but yet told them nothing."

Paul Kissen of Thompsons underlined the neglect faced by Adarma's employees during the firm's collapse.

"Adarma had built a strong reputation in the cyber security sector, but sustained margin and cash flow pressures ultimately proved insurmountable."

Will Wright of Interpath explained the financial challenges that led to Adarma's administration.

"We were told the company was looking for new owners but were kept completely in the dark and then dumped without our salaries."

A former employee described the lack of transparency from Adarma before the administration.

The collapse of Adarma highlights ongoing vulnerabilities within the cybersecurity sector, which has faced increased operational costs and market competition. This situation raises serious questions about corporate transparency and employee treatment in financial distress. As workers are often the last to know about internal troubles, there is a pressing need for better support systems. Legal advocates are stepping in, demonstrating the increasing awareness and need for protective measures in such scenarios. The ripple effect on the job market within this industry could be significant, underscoring the fragile reality of employment in high-demand fields.

Highlights

This firm left hard-working employees in the dark about its troubles.
Employees deserve better than to be disregarded during a crisis.
Corporate collapse often puts workers last in line for clarity and support.
No employee should face such uncertainty without clear communication.

Potential repercussions from Adarma's collapse

The insolvency of Adarma may lead to significant backlash and public criticism regarding employee treatment during financial distress. Many workers face uncertainty without pay or support, raising concerns about corporate governance practices.

This incident reflects larger issues within the corporate world regarding transparency and worker rights.

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edinburgh adarma employment cybersecurity law business law employment finance

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