Former owner of independent Apple reseller, Steve Bardel, has bought back his company, MyMac, after selling it to Broad Investments (ASX:BRO) last year.
At the time, Broad Investments purchased MyMac for $200,000 in cash as well as shares but Bardel purchased the company back for $150,000 in cash and shares.
Legal proceedings brought up by Bardel against Broad Investment’s director, Vaz Hovanessian, will also be dropped as part of the deal.
In November, Bardel began to take action against Broad’s directors after claiming they breached the Corporations Act by failing to disclose that its subsidiary, Mirrus Holdings was subjected to a winding up application by the ATO, placing Mirrus into voluntary administration that resulted in entering into a Deed of Company Arrangement (DoCA), and that its other subsidiary, Unified Business Communications Group was also being wound up by the ATO.
However, the board denied Bardel’s claims, advising that since Mirrus entered the DoCA, control was handed back to its directors and winding up proceedings against Unified Business Communications Group were settled and dismissed in November 2015.
In a statement to the ASX, Broad said the dispute created a dysfunctional board that eventually led to the Supreme Court action - this incurred additional costs and consumed considerable time, which Broad said was unproductive and would be better spent improving other businesses within its Group.
Since October, Broad Investments has been suspended from trading on the ASX after failing to lodge its full year results.
The company said there was a misunderstanding about who would lodge the forms and the company secretary had inadvertently overlooked the matter.
Broad completed its two acquisitions of MyMac, and importer and wholesaler of Apple accessories, Monsta Industries, in April last year.
At the time, Broad claimed that the acquisitions will create “an excellent platform to exploit further opportunities in the technology and telephony space for the Broad Group."
But in its statement to the ASX, Broad said MyMac was a high-volume, low margin business that required high levels of stock at all times, which suppliers weren’t willing to extend the required level of credit to sustain anticipated growth.
“The recent demise of Dick Smith led to more stringent scrutiny of retailers and their supplier credit facilities, resulting in a reduction in levels of stock and supplier terms,” Broad said.
Broad said it was actively looking for other acquisitions in the ICT space to complement its services, and remained hopeful that it would be able to do this once the ASX lifted the company’s suspended trading.
ARN has contacted Bardel for comment.