Distressed Scottish software company looking for buyers

A buyer is being sought for a Glasgow software company that fell into administration despite receiving £1 million in government funding from the Capital for Enterprise scheme.

Vamosa – which develops content and data tracking software – was placed into administration by its directors, after experiencing "quite a lot of creditor pressure" and the consideration of a number of winding-up petitions.

Joint administrator, Fraser Gray, of accountancy firm Zolfo Cooper, said directors had taken the decision with the agreement of Maven Capital Partners, the Glasgow private equity firm which manages the £1 million pot of government mezzanine finance.

Vamosa's leader and largest single shareholder, Scottish software industry veteran, George Knox, called the move "a bolt out of the blue for the staff and directors of the company."

Mr Gray said the wholly-owned US subsidiary of Vamosa, which employs a staff of 25 continued to trade as normal. He explained, however, a sale of both the Glasgow-based operation and the 100 per cent shareholding in the US subsidiary would be pursued, to a single buyer or to different parties. Of the 19 staff, 11 had been made redundant, with the remaining eight kept on to service ongoing contracts.

The Capital for Enterprise fund, was set up by Lord Peter Mandelson to help viable and promising companies gain the funding that the credit crisis was preventing them from getting from banks.

Whether there would be full or partial recovery of the £1 million was “too early to say”, Mr Grey added.

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