Audiovisual (AV) distributor Maverick has been thrown a cash lifeline by its shareholders to save it from the brink of administration.
Maverick ceased trading for 48 hours as it neared administration, but is now preparing for a company voluntary arrangement (CVA). The firm has also made 12 staff redundant.
Maverick attributed the glitch to a series of accountancy errors over a four-year period that recently came to light.
John Weatherhead, director of Maverick’s parent company VPH, said: “We discovered some massive accounting errors on our sales ledger totalling hundreds of thousands of pounds. An individual who left the company a few months ago was responsible for the errors and the discrepancies have only recently been spotted.
“To give the company some protection we have decided to apply for a CVA,” added Weatherhead.
As CRN went to press Maverick was preparing its CVA proposal, although a buyer for the firm was also believed to be in the pipeline.
Nick Culley, managing director of rival distributor Midwich, said: “If we had an accountancy error of this magnitude. I would regard it as a failure of our business. With margins as slim as they are now in distribution, firms have to keep a close eye on their accounts.”
Mark Bird, group sales and business development director at Steljes, said: “We have grown up with Maverick and have always respected Maverick for the healthy competition it provides. It is a tough environment and we wish John all the best in managing his business throughout this
difficult period.”
Darren Sainsbury, AV business manager at Computer 2000, added: “In the interim, while Maverick sorts itself out, we are here for resellers if they need us.”
Maverick creates specialist units