BMS Technology administrators have appointed Mason Gray Strange to conduct an auction of almost $1 million worth of products.
The Adelaide-based distributor entered into voluntary administration on 10 October, with Peter Ivan Macks and Ian Wayne Burford from Macks Advisory being appointed administrators.
The first meeting of creditors, which was held on 19 October, revealed approximately $995,000 worth of debts.
Macks has told ARN that the administrators looked to the market for any potential buyers but there was no one willing to buy the assets of the company. This followed an internal sales campaign to the distributor’s loyal customers.
After those two actions there was still a lot of stock left in the distributor’s three warehouses – Melbourne, Adelaide and Perth. Macks also said that no one had ownership of the stock left so the auction process was the next step.
The first auction is scheduled for 15 December. It is likely that there will be more auctions given the size of the stock and the proximity to Christmas.
"The stock forms part of the Deed Fund from which the Deed Administrators will pay a divided to creditors," the administrators told ARN.
Among the items for auction are Toshiba laptops, Netgear ReadyNAS network storage, managed switches, wireless modem routers, Arlo home security, desktop switches, Epson data projectors, short-throw projectors, document scanners, Eaton UPS', powerboards, Kyocera and Fuji Xerox MFC laser printers, Canon EOS digital SLR cameras, toner and inkjet cartridges, accessories and cables.
After the company was placed under voluntary administration, Macks revealed that it was talking to a number of parties who expressed interest in the BMS business. Leader Computers managing director, Theo Kristoris, confirmed to ARN it was looking into BMS’ assets but was still waiting on news from administrators.
BMS Technology director, John Reid, said in a statement at the time that the company had gone from not making a profit to making losses. Closing the business at this time was a “hopeful” step in making sure that it was able to cover its debts and give employees a better chance of finding new jobs before Christmas.
During the first meeting of creditors, on 19 October, it was revealed that BMS entered administration owing $272,265 to Netgear, $229,188 to Kyocera Document Solutions Australia, $184,850 to Toshiba Client Solutions and $161,513 to Eaton Industries. The copy of minutes also showed amounts owed to Epson Australia ($45,000) and Synnex ($36,000).
According to Paul Rugari, the financial controller of the company, as the company had Adelaide as its main market things grew difficult with an “economic climate becoming more challenging to handle”. There were also sales downturns nationwide and challenges going forward were too great for the company.
In October last year, BMS celebrated its 30-year milestone. Its distribution stable included Toshiba notebooks and accessories, Netgear, Eaton, Kyocera and its own-branded BMSTECH products featuring data cabinets, racks and cabling products.
BMS also touted itself as the only Australian Toshiba distributor that was also a Toshiba Premier Authorised Service provider, meaning that resellers could deal with one company for their notebook upgrades, configuration work, warranty and repairs.