Independent's outsourced small ads firm in receivership

The company that handles small advertisements for Independent Newspapers on an outsourced basis has gone into receivership.

The company that handles small advertisements for Independent Newspapers on an outsourced basis has gone into receivership.

The newspaper group said last night it was continuing to use the services of Armagh-based AnswerCall Direct despite its current financial problems. It is reported that 200 jobs at AnswerCall Direct could be at risk.

"Operationally, Independent's outsourcing arrangements are working extremely well. We continue to receive the same seamless and very high standard of service from the company," said an Independent News & Media (IN&M) spokesman.

The original decision to outsource the selling of small ads to the Armagh firm last May was a controversial one, with unions at the company expressing concern at the idea and the implications for jobs.

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The IN&M spokesman said: "We understand that discussions between the receiver and a number of interested parties are well advanced regarding the future of the business. We have no concerns regarding our ongoing service requirements."

AnswerCall Direct has invited PricewaterhouseCoopers (PwC) in as joint administrative receiver after encountering problems following the loss of contracts.

The company was established in Portadown in 1996 and moved to new premises in Armagh earlier this year. It provides inbound and outbound services to a variety of organisations in Northern Ireland, Britain and further afield. Mr Garth Carlow of PwC said: "Our appointment follows a period of difficult trading and loss of business for the company."

He said the focus would be on "preserving the core business" and said a number of enquiries had been received about the business, which would be pursued.

"Despite the difficulties facing AnswerCall Direct, more than 30 overseas and indigenous contact centres are now operating in Northern Ireland and the industry continues to grow," said Mr Carlow.

The company received nearly £3 million (€4.28 million) in financial support from Invest Northern Ireland towards the setting up of the new centre.

At the time of the move last April, the company pledged to create more than 400 jobs by 2006. But in September it shed 40 jobs in Armagh following the withdrawal of a direct line inquiry contract. - (Additional reporting: Press Association)