Having bet on Cyanogen, the company is now hoping to remain viable.
The lesser known phone company Wileyfox pinned it’s hopes on Cyanogen. If you recall, Cyanogen had previously planned to “take Android from Google” with it’s own forked version of the operating system. In 2015 this was an exciting statement. Cyanogen was a known quantity in the world of Android, and the promise of a version of Android without Google Play Services dependencies in apps seemed like a sweet proposition to this BB10 user. Times have now changed, and Cyanogen has changed it’s mind, and Wileyfox, one of the first to sign on to Cyanogen’s OS is now attempting to save it’s business.
Oddly enough, today’s struggles of the company do not fall at the feet of Cyanogen. Wileyfox chose last year to pivot to the Android we all know. Instead, the company has simply ran out of money.
The company confirmed their status to Tech Crunch in the following statement,
On the 5th February 2018 Smartphone manufacturer, Wileyfox (‘Wileyfox Group’) placed one of its European subsidiaries, Wileyfox Europe Limited (‘WFE’) into administration and appointed Andrew Andronikou and Andrew Hosking of Quantuma LLP as joint administrators.
The purpose of the administration is to restructure the Wileyfox Group, reduce its cost base in Europe and to ensure its long term future across all the markets it operates in. Regretfully, as a result of this, certain redundancies have been inevitable in WFE and the Wileyfox Group is working with those affected to ensure they have the support needed to find alternative employment.
The Wileyfox Group is committed to working with partners, distributors and customers in Europe to ensure, as far as possible, uninterrupted support and service for Wileyfox mobile handsets in the market, as well as outline the Group’s future plans in this core market.
All other subsidiaries of the Wileyfox Group continue to operate as normal and their operations remain unaffected by the WFE administration.
The Wileyfox Group will make further announcements regarding its restructure and future plans in the near future.
According to Tech Crunch, the company was already in dire straights. In April of last year, company statements showed £1,777 in cash in the bank, £467,766 in assets, and £543,476 in debt with an operating loss of £1.5 million for the year. However the final straw came about due to a Russian bank collapse. That Russian bank was a primary backer to the company.
In a second statement to Tech Crunch, it was confirmed,
“WileyFox’s holding company was primarily funded by Russian bank Promsyyazban (PSV) which was bailed out by the Central Bank of Russia in December and put into special measures that restricted lending outside of the country. Wileyfox has therefore lost access to working capital which has been temporarily suspended, but resolution could be some way off.”
Source: Tech Crunch