European Events employees arrived at work this morning to find they had not been paid for the month of January.
They were later called into a meeting where they were handed a letter stating that the company is to go into voluntary liquidation. According to a member of staff they were then ushered out of the building.
The letter, titled 'Proposed Winding Up' and signed by chief executive Christopher Palmer-Jeffery, read: "The directors have been considering the company's financial position and have resolved, with regret, that steps must be taken to place the company in voluntary liquidation... I regret to inform you that the company is no longer in a position to make payments to you for services rendered under your contract of employment. Your employment is therefore terminated with immediate effect. Your P45 will be forwarded as soon as possible."
Event reported earlier this month how the agency had got rid of three of its key directors – Paul Southern, Stephen Coverdale and Jane Wade (see the story here).
Palmer-Jeffery had said earlier redundancies were part of a restructure that would see the company refocus its attentions on its search portal, Leading Venues of London, for 2009.
"It is early doors yet but we will also be looking at acquisitions to make the business bigger," he commented earlier this month.
Palmer-Jeffery was unavailable to immediately comment on today's news.
Staff have been advised to get in touch with administrator Mazars LLP to recoup money owed.
Mazars will officially start proceedings on 16 February.