The curtain has fallen on Western Australian computer wholesaler and reseller Y Micro, with administrators appointed to help recover almost $3 million in debts to creditors.
The collapse covers two companies - wholesale outfit Y Micro Pty Ltd and retail arm Y Micro Computers Pty Ltd. Most of the company debt comes under the banner of the wholesale business, with initial estimates at around $2.2 million in unsecured claims.
Y Micro Pty Ltd was directed by Colin Yow. He and his brother Thomas Yow were co-directors of Y Micro Computers. It is believed Yow's wife Helen is owed around $700,000 in secure debt, an amount she paid to the National Australia Bank as guarantor.
Oren Zohar and business partner Louis Nilant from Clout and Associates, who were appointed administrators last week will hold the first creditors meeting this Wednesday. At this point, around 70 creditors are believed to be involved.
"At this stage we don't have sufficient cash resources to sustain operations and therefore we have suspended most trading, maintaining a skeleton staff whilst we try an effect the sale of the business," Zohar told ARN.
Y Micro Computers held a contract with the WA Government's Department of Contract and Management Services as a supplier of PCs and notebooks to various government departments and agencies.
The Y Micro wholesale company employed 14 staff with operations in Western Australia and South Australia.
Zohar could not comment on what brought about the collapse of the company, citing the more immediate concern of valuing assets and taking stock of inventory. Employee long-service leave must also be recovered. In the meantime, Clout and Associates have called for expressions of interest for the sale of the companies, and are in discussions with potential buyers.
"We are hopeful of achieving a sale and there has been some interest from a number of parties," Zohar said.