6:21pm Friday 26th March 2010
SCORES of workers at an office water cooler company are facing the axe after administrators “mothballed” their company.
Powwow, which has its headquarters on the Oxford Business Park, Cowley, was taken into administration by financial recovery firm Deloitte on yesterday.
About 50 staff were told the bad news after turning up for work this morning.
Rather than keeping it operating as a going concern, joint administrators John Reid and Brian Milne decided to shut it down immediately.
Mr Reid said: “The company has been suffering severe cash flow problems.
“We intend to mothball the business while seeking a purchaser for the business and assets.
“Unfortunately the majority of the staff will be made redundant while we consider the options for the business.”
The company has nine distribution centres across the UK and two production sites at Chesham and in the West Midlands.
It has about 50,000 customers nationally and employs a total of 360 staff. Powwow, set up in 2003, was originally owned by food giant Nestle.
In February 2009 it was bought out by a new firm, the Lomond Hills Water Company.
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