Industry stalwart, Leading Solutions, has gone into voluntary administration.
According to sources close to the company, McGrathNicol was appointed yesterday and will be going into the business today. Leading Solutions' 220 staff were informed last night at a national sales manager's meeting and by memo.
Several industry sources claim the systems integrator’s fall was precipitated by ongoing credit issues over the last 12 months.
Managing director, Frank Colli, declined to comment on the circumstances but expressed disappointment at its current situation. He told ARN his focus now was to get the best outcome for Leading's staff and stressed their integrity and support.
In a statement, McGrathNicol said it would run Leading Solutions on a “business per usual basis” and planned to sell the business as a going concern. The administrators were already in discussions with several parties and hopeful of a successful business transition, it stated.
“Whilst the sales process is underway, it is the administrator’s intention that the services of Leading Solutions will continue uninterrupted, and that all customer needs will continue to be serviced by a highly skilled, loyal workforce,” McGrathNicol partner, Johan Vorster, stated.
The administrators confirmed Leading's NSW office will remain open, and said it was continuing to receive stock from into its Melbourne warehouse to fulfil customer orders.
Leading Solutions is headquartered in Melbourne and maintains offices in Sydney and Queensland. Key vendors are HP, Microsoft, IBM, Intel, Toshiba and Symantec. The creditors’ list is expected to include HP, Dicker Data and Ingram Micro, among others.
It is also believed Leading Solutions has been the subject of several merger and acquisitions discussions in recent months with the likes of Anittel (formerly PK Business Advantage), along with S Central founder, Peter Mavridis, and industry investor, Polly Mazaris.
Leading Solutions suffered a significant blow after its merger agreement with ASX-listed rival, ComputerCorp, fell over at the eleventh hour.