Arxxus Technology Partners is standing on the edge of liquidation with more than $5.4 million worth of debt owed to creditors.
One month after calling in the administrators, the once-lauded Salesforce partner now owes $3 million to its vendor partner’s investment arm, alongside $686,866 to the Australian Tax Office.
According to its creditors’ report submitted to the Australian Securities and Investments Commission, Arxxus owes $400,000 to US financier Syven Capital, $236173 to its managing director David Freyer and $181,000 to its Indian subsidiary.
Other major creditors include software firms such as Coveo Solutions, owed $250,573; Box, $176, 54;1 and $14,612 to Mulesoft.
The company also owes $38,000 to Ernst & Young, the consultancy from which it hired its now-departed chief executive officer Kim Stewart-Smith last year.
Meanwhile, the Sydney-based company is still owed $774,234 from customers, including $68,000 from Salesforce EMEA and Salesforce Singapore collectively.
The Department of Finance and Innovation also owes $194,195, while shopping centre group Scentre Group owes $132,848.
Established in 2009 as an exclusively Salesforce customer relationship management (CRM) specialist, Arxxus claimed to have worked with more than 500 customers globally during its decade of operation.
In 2012, Arxxus allegedly became the first company in Asia Pacific to receive funding from Salesforce, which Freyer claimed at the time would go towards expanding its business globally.
However, it is understood that Arxxus subsequently struggled to win new business and maintain strong customer revenue, a factor confirmed by Steven Gladman, a partner at administration firm Hall Chadwick.
“They have not had enough customers to keep going,” Gladman told ARN. “They did what they could, but it’s probable the crux is they have not had enough serious revenue coming in.”
Although the option remains for Arxxus to undergo a deed of arrangement, Gladman said liquidation was the most likely route for the company.
Although Arxxus’ services arm has already ceased trading, its field sales and marketing app, FiledKo, is still operational and in the process of being sold as an asset by Hall Chadwick.
After the administrators were called, the majority of Arxxus' 40-strong headcount in Australia were let go, although DXC Technology stepped in and hired its small technical team.
Gladman confirmed all staff had had their salaries paid but were still awaiting leave and entitlements.
The fate of its 100-person Indian subsidiary remains unknown at this point. Freyer was unavailable for comment at the time of publication.