The HIP provider, which is a subsidiary of Network Data Holdings, has been selling HIPs since they became mandatory on June 1 2007, but the adverse market conditions have led the group to cease trading.
Network Data chief executive Richard Griffiths says: We told all the 22 staff at the start of the week that Hipstar will be closing down.
It hasnt come as a surprise to anyone - but to be honest not much comes as a surprise these days.
Last month the group released a pre-profit warning, hinting that the HIP provider was in danger.
NDH chairman, Grenville Folwell, said: The tough and turbulent times that the UK economy is now facing, and the impact on the mortgage and property markets in particular, will undoubtedly provide opportunities for companies that take the right actions now, and in the future, to ensure both survival and profitability.
In April 2008, the firm revealed that as a result of the HIP delay last year it had made a loss of £1.1m in 2007, compared with a £300,000 profit in 2006.
Griffiths says the group will issue an official statement next week.
No tag for this post.
Related postsLeave a ReplyCopyright © 2008 Business. All Rights Reserved. |
