Adarma has formally gone into administration, leading to the loss of 173 jobs at the Edinburgh-based managed security operations specialist.
The Splunk partner yesterday appointed Interpath as its administrator in a move heavily trailed by some of its staff late last week.
Upon Interpath’s appointment, Adarma ceased to trade and 173 of its 176 staff made redundant, Interpath confirmed to IT Channel Oxygen.
Visitors to its homepage are now greeted with a statement confirming the news.
Adarma’s peers have been quick to rally round after employees took to social media on Thursday and Friday to broadcast news of its impending collapse. Computacenter’s Group Security Strategy Manager, Bharti Lim, is among the latest to lend her support to those affected.
Ranking 108th in Oxygen 250 2025, Livingbridge-backed Adarma’s calendar 2023 revenues slid from £47.4m to £44.7m, partly reflecting the decision by its largest consulting client to “insource” the previous year.
Attempts to sell the business failed, Interpath confirmed.
“The Directors had pursued a formal sale process to secure fresh investment after the business had faced growing financial pressure after losing a major customer and had subsequently made steps to reduce its cost base,” it said in a statement issued to IT Channel Oxygen.
“However, without a solvent funding option, the business was not in a financial position to continue trading and the Directors were left with no choice but to place the company in administration.”
Will Wright, UK CEO at Interpath and Joint Administrator of Adarma Limited, stated:
“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.”
