IT e-tailer E-Store has been forced into liquidation.
The store closed its doors early last week and its Web site was taken offline. Two days later, creditors voted the company into liquidation. The company will be liquidated by Ian Purchas and Ron Dean Wilcox, of Star Dean Wilcox, who were deed administrators to the company prior to the decision.
E-Store has been operated for the last 18 months by Gerard Farley under a deed of company arrangement with Star Dean Wilcox, insolvency experts acting on behalf of the company’s original creditors from its first collapse in 2001 under founder, Steve Spilly.
Deed administrator and now liquidator, Ian Purchas, said that he advised the company’s director, Gerard Farley, to temporarily cease operating to avoid the possibility of being found to be trading while insolvent.
The Web site was subsequently taken off line and phone calls to the e-tailer are being answered by a voice message asking customers to either cancel their orders or contact their financial institution to void transactions with the company. As well as trade creditors (IT distributors and vendors), Purchas said he has been made aware of a number of customer creditors (such as customers with unfulfilled orders).
Purchas said a number of parties had discussed buying the e-tailer, but all withdrew their offers once the business’ status had been explained in detail.
ARN understands that one of the most recent bidders for the business was Perth-based e-tailer, BuyQuick.com.au. Director of BuyQuick, Andreas Adamides, confirmed his company ceased fulfilling orders for e-Store on March 28 and had withdrawn from any negotiations to buy the company.
Purchas said he will attempt to sell the business under liquidation. “Hopefully new parties will come to the table,” he said. Advertisements have been placed in most major newspapers.
E-Store director Gerard Farley said he was very disappointed, but that the liquidation was the only outcome that will please all parties involved. "My strategy always was to restructure this business - to get it in shape so that one of the large retailers would take us out," he said. "It took six months to get them to the table, but the plan was thwarted by having to put so much money into redressing the issues of the past."