Regional Victoria reseller chain Cygnus Australia has entered liquidation, following its failure to trade out of voluntary administration.
According to liquidator Andrew Cameron of chartered accounting firm Hall Chadwick, the directors of Cygnus announced the voluntary administration at a creditors meeting on January 7.
"The directors said they thought they were on track (to trade on), but they found that in the latter half of December the sales weren't what they had expected, and they just weren't able to pay the creditors," Cameron said.
Two of Cygnus' six stores, at Albury and Shepparton, have been closed. Approximately sixteen employees, including the managing director, Peter Ziebell, have left the company since the appointment of the administrator.
Manager of the Cygnus liquidation, John Brown, said the company was placed in liquidation after the administrator found it could not continue trading without further capital investment. "Nobody was prepared to put capital in," said Brown. "Prior to the liquidation, we attempted to sell the business without success. The creditors felt that it was a situation which couldn't be retrieved, and voted that the company should be placed in liquidation," he said.
At the time of going to press, the liquidator was seeking a firm commitment from a buyer, although Cameron said if this could not be achieved, the remainder of Cygnus' assets would be sold.
"I am hoping there will be sufficient monies recovered to pay certainly the first debenture holder, which is the National Australia Bank," he said. "The shareholders have been notified of the position of the company, but unfortunately it is unlikely I will be able to pay all creditors in full, and for that reason there is unlikely to be anything available for the shareholders," said Cameron.
Major creditors of Cygnus are Apple Computer Australia and the National Australia Bank.