Staff and creditors are awaiting the director’s report on Sydney-based IT integrator, Applaud, after administrators were brought into the organisation last month.
The company appointed Andrew Johnson from Johnsons Business Recovery and Insolvency as its voluntary administrator on October 12. At the first creditors’ meeting on October 22, Johnson advised creditors Applaud would continue trading while in administration.
Applaud IT has been in operation since 2004 and was formed from the ashes of US-based company, CyberNet Group, which had been liquidated in Australia. It provides IT integration, professional and managed services to customers in the 300-1000 seat space. Key vendor partners include Citrix, Microsoft, VMware, HP, Cisco and Dell.
A second creditors’ meeting is scheduled for November 9. According to the first creditors’ meeting minutes, which were sighted by ARN, Applaud’s liabilities are estimated at just under $185,000. A deed of company arrangement from the company’s directors is expected to be tabled at the next meeting.
Applaud managing director, Ricci Danieletto, said the business was undercapitalised at the time it was established and took on a larger than anticipated taxation debt when CyberNet was liquidated. He blamed the current economic downturn for the change in its circumstances.
“Towards October, the Australian Taxation Office took a more inflexible position on that debt, so we had no option but to go into voluntary administration or wind up the business,” he told ARN. “The business is solid in its own right... the directors are now putting together a deed for the creditors and we’re hopeful and upbeat about trading out.”
Danieletto said it continued to win customer projects and he emphasised the company’s solvency and future. The company recently rebranded from Applaud IT to Applaud.
Commulynx director, Stephen Knights, has been partnering with Applaud for some time, and was also hopeful of working with the business going forward. He expressed support for the staff and company’s skill sets.
Applaud is just one of several channel players to enter administration or close its doors in recent weeks. Last week, Leading Solutions went into voluntary administration after difficulties with credit and financing. Melbourne-based boutique services integrator, [[artnid: 324424|Comsys, also closed last week as a result of similar issues.
S Central is also expected to be liquidated after selling off its business assets to Brennan IT earlier this week.