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.