How 2e2 Isle of Man became Argon Technologies

With all the drama and disappointment surrounding the collapse of 2e2, we were both surprised and delighted to hear a good news story about how part of the business was rescued from certain demise by a selfless act by one outsider, a leap of faith by another, and an unusual measure of goodwill from those involved with the business.

Though we are not the first to announce the rebirth of 2e2’s Isle of Man (IoM) business as Argon Technologies, I think we are the only ones to give the story behind the story. And it’s well worth the telling.

The beginning of the end

The saga began on Monday 28^th January when it became apparent that 2e2 was going to have to call in the administrators (see 2e2 hits the buffers). PwC, who had been advising 2e2 management on the process in London, notified their man in the Isle of Man, Gordon Wilson, that although not included in the administration process, 2e2’s IoM business was unlikely to have enough cash to continue trading, especially as wages were due to be paid that Thursday. Wilson got in contact with Jonathan Camfield, MD of 2e2 IoM to let him know the news. Camfield had moved from 2e2 UK to run the 30-year old IoM business in 2006 after it was acquired along with other ‘offshore’ operations in Guernsey and Jersey.

Hopes of a rescue for company looked bleak. The IoM business was subject to debentures and was a guarantor for vast debts of the 2e2 group in the UK, which would need to be discharged before the business could be sold even if they could find a buyer. And somehow they had to find a way to keep trading till then.

Selfless act and leap of faith

In an astonishingly selfless act, Wilson offered to pay the bulk of the wage bill of the entire 27-strong team out of his own pocket for another week in the hope that this might buy just enough time save the company. To do this, Wilson needed to present a convincing case to the banks to discharge the debentures (which he did) and simultaneously help the company find a willing – and very trusting – buyer who could move quickly.

The latter came in the shape of Ian Fairbairn, a local entrepreneur who had built a successful property management and investment company. Fortuitously, Fairbairn was looking to lease space in 2e2’s IoM offices and to engage them to provide IT services for his firm. To cut the short story even shorter, Fairbairn was convinced not just to buy the services, but to buy the entire business. By the end of the following week the deal was done!

A happy ending and a new beginning

Everybody involved with the business stood by the business. Clients continued to pay their bills – which with the consideration paid by Fairbairn to buy the business was enough to keep the wages flowing and to pay back Wilson’s loan. Staff kept on working; and suppliers kept on supplying. To date, the now renamed Argon Technologies has not lost a single client, supplier or employee.

There’s no doubt that Fairbairn was keen to help save 27 jobs on the Isle of Man. But his investment was in no way philanthropic. Fairbairn sees a real future for Argon as a now Manx-owned and operated business and the only one of any scale on the Isle of Man that can offer a broad scope of infrastructure support and related services. Now Argon hopes to expand its relationships as the local service partner for major IT infrastructure vendors such as Fujitsu, SCC and Phoenix as well as with local businesses and government organisations, a prospect that seemed impossible to conceive just a few weeks prior.

Posted by Anthony Miller at '07:42'