Consultancy reseller Text Systems has placed its two holding companies into receivership to facilitate a management buyout and free itself of debt.
Simon Bower and Daniel Smith of chartered accountants Robson Rhodes were appointed receivers of Text Systems Holdings and Text Systems Group on 27 July.
The move means that Text Systems Holdings, which was the holding company of the trading firm, and its owner Text Systems Group, will be wound up.
In their place, Text Systems Solutions has been established by the MBO team, following the purchase of the trading company from its previous majority owner, the Royal Bank of Scotland (RBS). In exchange, RBS has taken ownership of the trading company's property in south London.
The new board is made up of John Anderson, managing director, Helen Potter, financial director, and Heath Davies, marketing and services director.
Anderson said the move would free the reseller from debt. "It's a convoluted process and initially sounds alarming because the 'r' word [receivership] is involved, but it's good news for the company."
He added that the reseller would continue to concentrate on providing banking compliance and facilities management services to the financial services sector.
Text Systems exited the hardware business two years ago, causing revenue to fall from more than £13m in 1996 to £8.7m in 1997.
Anderson said: "Our profitability has improved since we concentrated on the consultancy and project side of the business. We're still an authorised Compaq partner and still work closely with Dell, but now it's rare for a company to ask us to supply their hardware."
Bower said: "The move is a reconstruction package, which will be good for the business. It's good to see a business using receivership as a positive tool."
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