UK WAN optimisation start-up DBAM Systems is hopeful of finding new investment after filing for administration yesterday.
Founded five years ago, Wakefield-based DBAM claims to serve about 40 resellers via distributors Tekdata and Bell Micro.
Chief executive Paris Arey confirmed that Sheffield-based The P&A Partnership was appointed as the firm’s administrator yesterday.
All 25 full-time positions have been eliminated while a solution is sought to allow DBAM to continue trading, but a skeleton staff - including Arey - has stayed on to help with the process.
P&A is in talks with DBAM’s four primary investors, but Arey said new backers are also being sought.
He told CRN: “We have award-winning technology. Even though this is a difficult process to go through I am cautiously optimistic that DBAM will emerge from the administration process.
“DBAM’s investors have been extremely generous, just as our employees have been. It is entirely possible that some complementary investors will see the merits of the business.”
Former Adtran and Cisco executive Arey, who took the reins in September, stressed that DBAM’s technology was recently praised by Gartner and said its sales grew 28 per cent last year.
“[Entering administration] was nothing to do with our technology, which has received many accolades,” said Arey. “As a technology start-up it has been a tough market over the past 12 months and it has been no exception for us.”
DBAM only appointed Bell in December and the distributor is believed to have not yet purchased any stock. Tekdata has been on board for longer.
Jason Hill, sales director of Tekdata, said: “We will continue to work with DBAM in whatever form it comes out in. It has fantastic technology and I am sure any problems it has will be resolved.”
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