UK data center cooling services firm FEL Group has gone into administration.

The company, which provides installation & maintenance services to data center clients in the UK, last month appointed RSM as administrators.

The data center air-conditioning specialist, founded in 1997, turned over £5.5 million ($6.6m) in its accounts for the year ending 31 December 2020.

It collapsed after “protracted negotiations” over a key contract, administrators at RSM UK told Construction News.

A spokesperson for RSM UK said the protracted negotiations over the unnamed contract caused ‘significant financial pressure’ for the Lincolnshire firm and “impacted its ability to win other business.”

“After trying to source additional investment and then a sale of the business, the directors recognized the company was unable to avoid insolvency.”

John Higginbottom, previously FEL Group Managing Director, left the company in July 2022, according to his LinkedIn profile. He joined in 2018 as CFO and became MD in 2019.