Genesis MSP takes hold of TLC IT Managed Services' customer contracts and assets
- 01 July, 2010 08:20
- Comments 12
The assets and customer contracts of troubled Melbourne IT reseller, TLC IT Managed Services, have been purchased by Genesis MSP.
According to former TLC IT Group shareholder , Jan Chapman, who attended the creditor’s meeting on June 29, the Genesis takeover meant TLC IT Managed Services employees would still keep their jobs.
TLC IT Managed Services was one of several subsidiaries under the TLC IT Group banner, run by Alan Chapman. It once held a 100 per cent stake in TLC Managed Services, but despite the failure of the parent company, it continued to trade.
Brad Tonks and Chris Wykes, from Lawler Partners, were appointed as joint administrators to the company on May 26.
ARN understands Alan Chapman also runs Genesis MSP. Jan and Alan are brothers.
Administrators recommended the creditors place TLC IT Managed Services into a Deed of Company Arrangement. Under the Deed, Genesis MSP will be required to provide records, accounts and information regularly.
The administrator's declined to comment on TLC IT Managed Services. ARN has obtained a copy of the administrator’s documents, which detail the company’s financial statements that record liabilities totalling about $1.14 million as of May 26.
Unsecured creditors are owed $1.02 million, including more than $900,000 to the Australian Taxation Office (ATO).
According to the report, employee entitlements stand at about $291,000, but since employees are continuing their employment under Genesis MSP, they are not entitled to redundancy entitlements.
In a previous statement, the administrators indicated Genesis will be responsible for all employment costs, expenses and liabilities as of May 26.
“In the event that the Deed fails and the company is placed into liquidation, employees entitled to GEERS maybe severely affected,” the administrator’s report said.
It also detailed Alan Chapman’s explanation of the company’s financial difficulties and listed a dispute among directors, poor economic conditions and CFO incompetency.
The administrator’s added their own reasons to the list including poor strategic management of business and inadequate management controls on both revenue and costs.
Alan Chapman had not responded to calls for comment at the time of publication.
Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.
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Comments
The Phantom
I suppose the question that needs to be asked is was the so called incompetent CFO every really fired?
Andy Ford
How on earth can an incompetent CFO contribute to any busines to owing the ATO $ $ 800,000 and other creditors
another $ 400,000 or whatever the number is?
That's after the TLC IT Group went down owing more than
$ 500,000 (including at $ 250,000 plus debt to the ATO) and TLC IT Managed Services surviving only then to go in to liquidation
Surely the business must have been trading insolvement for some considerable time and that responsibility sits firmly with the director of the business not the CFO
At what point will ASIC start investigating the TLC IT saga?
Their apparent lack of action is disgraceful.
Andy Ford
Just looked at the Genesis MSP websiteand it reads:
About Genesis MSP
Established in 2001 our head office is in Port Melbourne, and a support office in Sydney. With our Australia wide channel of technical and remote management software Genesis MSP is able to provide services to clients across Australia.
Is that correct?
Was Genesis MSP actually established in 2001 or was that TLC IT?
Robert Andrews
If the TLC group of businesses were all making losses such that they got put in to voluntary or non-voluntary administration or liquidation, and Genesis MSP was only "formed" (phoenixed from the ashes of TLC MSP) to take over the business of TLC IT Managed Services, then what chance is there that Genesis MSP is going to succeed?
Surely re-birthing a business to trade in the same manner as a previously failed company, to be operated by the same people who caused that previous company to fail means that the same outcome is going to happen.
Why is the TLC IT Managed Services administrator allowing this to occur? I am sure there is some sort of payment deal to supposedly get money back for creditors as part of the Deed, but isn't this the same as giving a gambling addict who has lost everything and stolen from others to fund their habit another $10 because they might win.
Also, if the ATO is owed $800K by TLC IT Managed Services, and TLC IT Group owed the ATO $250K, meaning the ATO is owed in excess of $1mil, why aren't they taking a more active role in getting their money from the Director or seeking criminal charges for tax evasion or something? $1mil would put a lot of teachers in to schools if it was collected.
If this whole saga involved a car reseller we'd have nightly current affairs programs chasing the Director down the street asking where he's put the money, instead because its white collar it will go largely unreported and unprosecuted. Its outrageous!!!
withheld
I worked for TLC IT a while back and can only say their demise comes as no surprise. Their commitment to customers service was in their words "smoke and mirrors". I am stunned that you can legally rebirth a company in Australia like this in 2010.
withheld2
I too "survived" working at one of the TLC "entities"
Staff refered to the company as TLC-A, B, or C.
Nothing in the day to day business changed apart from the name, but little did we know, but that it may have been a ploy to not be liable for withheld super contributions.
Unfortuantly the previous ATO investigations into non payment of super while the companie(s) were based in St Kilda had no result ...
I believe Alan (is it his first name?) Chapman's business dealings should be thoroughly investigated.
withheld
...well anyone else want any more info? Keep in mind none of this is confirmed it is simply speculative and should not be taken as fact. Hi mum - love you.
BTW I know after putting all this down everyone will know who I am...but you gotta live in the moment.
Alan's real name is Craig - Alan is his second name, and do a search if you will to find out what he was doing prior to IT. He was a photographer in a business with a woman and my recollection of that was that business went under also - similar circumstances? no not quite it was all a lot smaller than the Total Lie Conglomerate.
I saw the early years of TLC back at it's birth - Andy you asked if Genesis was formed in 2001 - no it wasn't that was definitely TLC - the original Total LAN Care, although go one step back and you get the fact it was Switched On Support - which was a branch offshoot from Switched On Knowledge. Alan started with Rowan at SOK a database marketing company where he was essentially a Network Engineer, he had a few dollars behind him and soon enough he and Rowan started Switched on Support (or "switched off" as many people Still call them.) the company was only about 4 people for a long time, primarily doing work for MCG Computers in South Melbourne along with anyone else Alan could schmooz a few bucks out of. I had a conversation with the owner of MCG a couple of years ago who informed me of Many transgressions Alan made in poaching clients from him and ripping him off for hardware.
By the time I left the Super debt was only a mere 30-40K and that was only about 12 months worth and half a dozen people, I was one of the first to call him on his lies and deception, to which he threatened to sue me for stealing clients after I left, which was entirely false, as once they found out I was gone they were glad and chased after me! Unfortunately some of his most lucrative clients.
TLC-A was the start of the companies downfall with it's "share scheme" - perhaps it started with his purchase of the Porsche "toy car" Boxter @ $126,000 just to claim the $12,600 of GST for that month....who knows, or perhaps the multi-hundred thousand dollar jobs that engineers were supposed to be entitled to 40% earnings on that only got 10% whereas the CRMs got 40% because they ran the contract through the books as Hardware instead of Labour...
In the business world everyone needs role-models...in Alan's case I think it was Phillip Jarvie...anyone know who that is? WELL he was the director of SmarterDSL - now I'm sure it rings a bell with people...check Nicademus' post on this link
http://forums.whirlpool.net.au/archive/169874
(geez he sounds like a smart fellow...)
- tell me you don't see any similarities with TLGEN to this below:
http://cclsr.law.unimelb.edu.au/judgments/states/vic/2000/october/2000vsc408.html
Alan Chapman
Leigh Green (still afraid to use your really name) I recall you were fired from TLC because you were quoting TLC clients to provided services privately through your own little company, you got court and fired 8 years ago, get over it.
The rest is as you say “should NOT be taken as fact” because it’s complete rubbish
PS I have never heard of Phillip Jarvie
ARN why do let this kind of rubbish be published on your website?
Another former employee
Why is it that Alan (Craig) is publishing comments on articles written about his schoddy business dealings nearly 10 months after the original article was published? Nothing better to do?
Paranoid?
For someone who is constantly showboating about public image and the like, i find it amusing that he can't even string a short series of words together. Someone was "court"? Perhaps you meant "caught"?
Do some work for a change so that those people still working for you don't end up the same way as so many of us did in the past.
Out of pocket many thousands of dollars in unpaid entitlements.
So very glad to be out of there.
And another former employee
TLC was a great place to work I was there for 4 years and moved on to another bigger opportunity, some people just weren’t up to it and they were moved on. Nobody likes being told you’re not wanted or not good enough; I guess they still have an axe to grind.
Richard Head
Well it seems that Alan has failed again. After contriving a deal to phoenix trade TLC IT Group's operations in to Genesis MSP, leaving hundreds of thousands of dollars of debt behind, he's done it again.
Genesis MSP has filed to be wound up (28/06/11 Form 519A was filed with ASIC). Alan has, somehow, convinced Generation-E to pay him money for a customer list.
Gen-E is now ringing current (what few there are) Genesis customers and trying to convince them to stay loyal. The fact is however that most current and ex Genesis/TLC customers are telling Gen-E to go away.
Gen-E is also alleged to be offering the remaining Genesis/TLC employees jobs, however whether those job offers are ones the employees are going to want to take or whether Gen-E plans to keep them beyond customer hand-over is yet to be seen. After all, Gen-E already has a pretty good operation, they don't need the people from Genesis who couldn't find anything better before the 4th collapse in 2 years.
Schaden Freude
www.genesismsp.com.au now goes to the website of Generation-E.
TLC IT Group & Genesis MSP are now officially nothing more than a skid mark in the history books.
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