Despite earlier hopes for a possible restructure, Merlin has today cut 80% of its workforce, with the remaining staff kept on to wind up the business

Merlin’s administrators have made an overnight decision to make 200 Merlin staff redundant, leaving about 50 staff to keep the business ticking over until it shuts completely.

The decision to close Merlin has quashed any possibility of a sale, and also seems to contradict rumours that the administrators were considering restructuring and relaunching the loss adjuster, possibly through some sort of pre-pack scheme.

The most notable point about the Merlin administration has been the breakneck pace of developments. This cannot have been easy for the Merlin staff. On Monday, most were unaware of the impending administration. The news broke on Wednesday, and by this morning most Merlin staff were made redundant with immediate effect.

The full closure of Merlin will also happen quickly, according to the administrators. But, while it’s bad news for Merlin staff, their capabilities have been praised by their peers, and many should easily find employment at their former rivals.

Speaking of rivals, Merlin’s complete withdrawal from the market could ease the current competition between loss adjusters and perhaps reduce the “overcapacity” that Merlin found such an issue.