Leading Scottish cybersecurity firm Adarma makes 173 staff redundant after entering administration

A leading Scottish cybersecurity firm has entered administration, resulting in 173 employees losing their jobs.

Edinburgh-based Adarma, which was founded in 2009, had grown to one of the largest independent cybersecurity companies in the UK with clients in the banking and luxury goods industries.

The business employed a total 176 staff across their headquarters in the Scottish capital and office in London.

The directors were pursuing a formal sale process in a bid to inject fresh investment into the business after the loss of a major customer resulted in financial pressure.

However, STV News understands that employees were told during a call on Thursday that Adarma would be ceasing operations.

Will Wright and Alistair McAlinden from Interpath were appointed joint administrators on Monday.

Upon appointment, the business stopped trading and 173 staff were made redundant.

It is understood that they will not be paid for the work carried out in July and will have to claim any unpaid wages through the Government’s Redundancy Payments Service for up to £719 per week.

Will Wright, UK CEO at Interpath and joint administrator of Adarma Limited, said: “Adarma had built a strong reputation in the cyber security sector, but sustained margin and cashflow pressures ultimately proved insurmountable.

“Like many in the industry, the business faced intense competition, rising operational costs, and a continual need for investment.

“Given Adarma’s financial position, we’ve made the difficult decision to cease trading. Our team is working closely with affected employees to support them through the redundancy process, including assistance with applications to the Redundancy Payments Office.”