Infotronics is liquidated
- 12 November, 2009 10:29
- Comments 5
Liquidators have been appointed to boutique virtualisation distributor, Infotronics, just one week after the business was expected to be sold to Brennan IT.
S Central announced last week that it had sold its business assets, including Infotronics to Brennan IT. On November 11, Simon Nelson and Anthony Cant of Romanis Cant were appointed liquidators to Infotronics and the distributor ceased trading.
Brennan IT managing director, Dave Stephens, told ARN it opted not to take on the Infotronics business but did hire a small number of the distributor’s staff as part of the purchase.
S Central managing director, Peter Mavridis, appointed the liquidators, he said.
“We took our time to review the business, but we didn’t think it fit with our portfolio,” Stephens said. “A lot of our business is direct, and it’s difficult to play both sides.
“They had some good products, but we have other challenges to focus on.”
Romanis Cant’s Nelson said Infotronics owed about $800,000 to unsecured creditors, along with a small number of employee entitlements.
“We’re looking at realising the assets under our control, which primarily involves stock and debtors, although this are factored to the NAB,” he said. “We’re simply clearing up the remains of the business operations.” A creditors’ meeting will be held on November 20.
One former S Central staff, who asked not to be named, said there was no communication from management on the decision. It is understood there were just four employees left at Infotronics when the overarching business was purchased by Brennan.
“Six weeks ago, it [Infotronics] was an easily recoverable business,” the former staffer said. “This is very sad.”
At the time of sale, concerns were raised by various S Central employees about their entitlements. Several former and current staff talking to ARN said they were owed at least two weeks’ wages, along with other entitlements. Many remain unpaid.
Stephens said about 50 S Central employees were now working for Brennan. The managed services provider has taken on responsibility for covering long service leave and commissions to those individuals, and paid all staff as normal last Friday.
Stephens was reluctant to go into details about other outstanding former S Central staff entitlements, but again referred to the GEERS program as a possible way of employees recouping their money should the S Central shell be liquidated.
Alternatively, he highlighted Mavridis’ belief that there would be enough residual cash in S Central to pay out outstanding employee costs.
“We’re confident they will be looked after one way or another,” Stephens said.
In the meantime, Brennan is yet to appoint Mavridis to a specific position but hopes to have secured something in coming weeks, Stephens said.
“We’re still working through the process and talking to as many clients as we can to ensure them that it’s business as usual,” he said.
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Comments
Anonymous
Bad decisions continued by Brennon
I don't think this was a very good decision by Brennon. Infotronics was one of the companies that made money with the S Central component constant taking money from them and putting them into debt.
basicallydave2004
Anything definate for ex-employees in that article?
It is indeed great news that Brennan took some 50 staff across from S-Central, however, the lack of definate news around the staff that are not working, and are now looking for other jobs is far more concerning. This is particularly in view of the fact that neither Dave Stephens or Peter Mavridis can give a definate, accurate picture of what is happening to them.
Mavridis "highlights a BELIEF..that there WOULD, be enough cash to pay outstanding monies to
Mavridis is "CONFIDENT" they will be looked after ONE WAY OR ANOTHER"
"Reluctant to go into details about other outstanding former S Central staff entitlements, but again referred to the GEERS program as a POSSIBLE way of employees recouping their money should the S Central shell be liquidated.
Where is there anything definate in that? 5 weeks out from Christmas it seems that the Mavridis care factor is zip, Brennan get a bargain (and you cannot knock them for that), but really, where are the definate answers, the compelling, compassionate answers that staff now looking for work need. Surely Mr Mavridis, a BRW Fast 100 individual - allegedly a multi, multi millionaire - is better than this?! You'd think Mavridis would of had the foresight to see this coming and help prepare his team...or really is his place on the BRW as false as the economy of truth he uses with his staff. Why cant he cough up out of his own pocket? As opposed to possibly, maybe, with the wind behind them, potentially using GEERS.
Mavridis, stand up, be a man, be counted and give your staff all their entitlements. They stood by you, stand by them. Get some cojones man.
Anonymous
Romanis Cant’s Nelson said
“We’re looking at realising the assets under our control, which primarily involves stock and debtors, although this are factored to the NAB,”
If it was factored why did Mavridis say the 6-7 million receivables will be enough to pay the staff entitlements and creditors? Isn't that all retained by the bank?
BTW: according to one of the ex SC staff, only about 20 people have joined to Brennan, not 50.
Annonymous
No money in distribution
I don't think there is any money in distribution in OZ if your not a multinational. good decision by Brennan!
Anonymous
No Money for creditors nor employees
This highly profitable business (Infotronics) was driven into liquidation within 2 years with nothing left in the coffers and owing creditors and employees vast amounts of money.
S-Central, also about to be driven into liquidation or whittled down to a shell, no-one but PM knows . It may not have been quite as profitable and had more employees, however it did turn a good profit and had potential for more. Also gone owning vast amounts of money to employees and creditors as well.
The statements above are not speculation, this is what has occured and are easilly verifiable.
Think that speaks for itself, the real questions are:-
1. When was the company actually insolvent?
2. Was it exceedingly bad management? Or something else entirely?
The director (PM) has a list of qualifications as long as my arm, he's not some guy who got lucky one day and became a director, he has trained for this role, education does not always confer ability though. He is on the board of a bank and, I believe, other businesses as well.
Should these businesses and bank be concerned that one of their directors could let this occur? He would have had an intimate knowledge of the finances of both companies, that was his job. How did it get to this point?
What do we believe here?
What is the truth of the matter?
There needs to be an investigation by an independant statutory body ASAP, so that the truth of the matter can be aired, any victims can be compensated and any innocent parties exonerated.
The ex-employees and other creditors need to be told what is happening and when it is going to happen immediatly. There has been nothing but delays, uncertainty and zero information coming from S-Central/Infotronics management even when queried directly.