Silverjet administrator Begbies Traynor has confirmed efforts to save the failed carrier have floundered.

A provisional resue deal with Kingplace, the Irish arm of Swiss investment group Heritage, was announced late on Tuesday and had to be signed off today.

But joint administrator Mark Fry said: “Kingplace is no longer in a position to acquire Silverjet as a going concern. As a consquence we have had to make the entire workforce formally redundant in line with our legal obligations.”

The 420 Silverjet workers were warned of likely redundancy two weeks ago when the carrier ceased flying.

Talks continue on the sale of Silverjet’s assets, both with Kingplace and other potential investors. But it now appears unlikely the Luton-based all-business class carrier will resume flying.

The deal to acquire Silverjet as a going concern proved too complex to complete, with Kingplace acting on behalf of Heritage – which represents unnamed private investors – and unable to reach agreement with third parties, possibly regarding aircraft leases.

Fry confirmed: “We continue to negotiate the sale of Silverjet’s assets for the benefit of the company’s creditors.”