In another sign that the global financial crisis is still hurting, privately held Australian IT distributor TodayTech has called in administrators. TodayTech’s directors have appointed Rob Whitton of William Buck Chartered Accountants administrator.
Whitton said the $100 million-a-year business would probably keep trading for another two weeks but would most likely end in voluntary liquidation and there’s little likelihood of most creditors being paid.
The company distributes PC products, peripherals and components to more than 5000 retailers, VARs, systems integrators and others round Australia. Due to close are its offices in all major Australian capitals and branches in Guangzhou, Shanghai, Beijing and Hong Kong.
Asked what went wrong, Whitton told CDN: “The main reason is quite basic in that we are in the midst of a significant downturn in this business and it has been contracting. I think fundamentally technology has moved from computers being a generic white box towards branded makers such as H-P and Dell,” he says.
Whitton says that there is little chance of the company trading out as there was a significant shortfall between what is owed and available assets. “They will not be trading out and I can’t really report on the net position other than to say there will be a shortfall and unlikely unsecured creditors will be paid,” he told CDN.
He estimates there are around 60 unsecured creditors but the one secured creditor will be paid. He did not name the creditor, but Intel has been a major supplier to TodayTech.
Whitton says all 30 workers will be paid their full entitlements. All stock would be sold off, and it was hoped a buyer could be found for TodayTech’s logistics facilities.
The first creditors meeting is scheduled for October 19.