Cambridge Analytica, the data analytics firm at the centre of the Facebook data scandal, is closing its doors and commencing insolvency proceedings. The company has been unable to recover from the bad press coverage and large legal fees in dealing with the aftermath of the Facebook data breach allegations.
Although they deny any wrongdoing, the company is no longer able to continue trading as customers and suppliers have been put off by the negative media, and it is understood that insolvency proceedings have been commenced in the USA and that the company has been put into administration in the UK. Vince Green and Mark Newman of Crowe Clark Whitehill have been appointed as joint administrators.
Ashfords' Take: The international data firm has struggled in the aftermath of the Facebook data scandal and the negative press seems to have driven all business away. The firm had no choice but to enter insolvency proceedings, but allegations are swirling that an alternative business is being set up and that the firm's operations will simply move across, so watch this space… The company has firmly denied these rumours.