Pessimism at Nua as rescue hopes diminish

Internet consultancy firm Nua has only 5 per cent chance of being saved, its chief executive, Mr Gerry McGovern, told staff at a confidential meeting lastnight.

Workers who spoke to The Irish Times following a 5 p.m. meeting at the firm's Merrion Road office said they were told the company would most likely close on Monday evening. In another depressing development for staff at the troubled firm, Nua's 35 workers did not receive their salary, which was due to be paid yesterday. One worker said last night he did not expect to receive this month's wages.

Nua, which is 20 per cent owned by Eircom, needs about £3 million (€3.81 million) in funding to stay afloat. However, crisis talks with potential investors have failed to produce any cash. Last night, negotiations between Nua and UK technology firm Mediasurface looked to have failed, although neither firm would confirm the talks had ended. Talks with Garnham Corporate Finance, a company run by Irishman Mr John McKeone, broke down more than a week ago.

Contacted yesterday afternoon, Mr McGovern insisted Nua was still afloat and hinted that he was talking to other parties in addition to Mediasurface.

Following last night's meeting he was unavailable for comment. Other management figures contacted by The Irish Times would not comment on the details of the meeting with staff.

The imminent threat of closure at Nua follows the dramatic liquidation of two other companies in which Eircom had an interest in recent months. In January, Ebeon, a technology firm 51 per cent owned by Eircom, collapsed and laid off 170 staff. A further 50 people lost their job at Viasec, a Donegal-based company in which Eircom held a strategic interest.

Last week the telecoms company Formus Communications shut its doors with the loss of more than 70 jobs.

A spokeswoman for Motorola last night denied that any of the company's 650 Irish jobs in Dublin and Cork was at risk following an announcement by the company that it would shed about 4,000 jobs due to the US economic slowdown.

The spokeswoman said the layoffs would occur in the networks division while the Irish jobs were in other areas.