Square One appoints administrator
- 03 February, 2003 07:32
Printer reseller and service provider Square One has been placed into administration. The company allegedly owes $1.3 million to various printer vendors and distributors.
Square One operated its printer sales and services business from locations in Sydney (Thornleigh), Melbourne (Sandringham) and Brisbane. The Brisbane office closed in November 2002. On January 22, Hall Chadwick was appointed as administrators for the remainder of the business.
Hall Chadwick originally planned to continue trading for a period of four weeks, administrator Duke Wolfgramm said, but several days after taking control of the company the administrators realised Square One did not have the finances to continue ordering goods from suppliers.
The Sydney business was promptly closed and a large portion of the plant and stock from the Melbourne business was sold to Darkeri, a business run by former Square One director Daryl Eames (see related story, page 6).
Twelve staff lost their jobs when the business was closed down, but Wolfgramm said there was some hope for the Melbourne-based staff, all of whom had been offered new employment with Darkeri.
He said most of the creditors of the company were‘trade partners’, printer vendors and distributors such as Tech Pacific, Alloys, Fuji Xerox and Kyocera Mita.
Kyocera Mita managing director, David Finn, said he was “not even concerned” about the debt, calling it a “small blip on the radar”.
“It has been a relatively good year for us in terms of resellers falling over,” he said. “This is the first one to go on us in around 12 months.”
Wolfgramm said creditors were likely to be presented with a number of options when he reported to them in several weeks time. These ranged from liquidating the company to a deed of company arrangement.
He has also asked a South African firm, which owned 50 per cent of Square One, whether it wanted to inject some funds which would be used to pay creditors a percentage of the money they were owed and to continue trading.
Wolfgramm said it was too early to predict an outcome for the business.