The administrators of Sam UK have been unable to sell the ailing Nottingham reseller, which has been wound up owing debts estimated to be more than #1.1 million.
PricewaterhouseCoopers (PWC) was appointed as liquidator on 18 January after receivers KPMG, who were appointed on 6 November, failed to find a buyer for the Digital reseller.
In his report to creditors, David Wilson, sole director of Sam UK, attributed poor management, declining sales and pressure on margins, as well as the loss of key customers to former staff members staff as the main reasons for the failure of the company.
At the creditors' meeting on 5 February, the liquidators were requested to pay special attention to an alleged breach of confidentiality by the company's former employees.
Amounts owed to unsecured creditors were estimated to total #1,145,931.
Sam UK's key creditors include CHS Electronics, which was owed #180,362.20, Computercentre UK (#172,214.05), Ingram Micro UK (#166,849.63) and Computer 2000 (#50,443.88).
Nick Elliot, corporate recovery manager at KPMG, said: 'It was an unfortunate scenario where the company was left without a sales force and you can't run a company on that basis.'
Sam UK was formed in 1988, moved into purpose-built premises in Nottingham in 1991 and, at its height, employed more than 70 people. In its financial year ended 31 July 1996, the reseller achieved profit of more than #204,000 on revenue of #15.8 million. A year later, turnover had fallen more than #3 million to #12 million, with a loss of #160,000. By 1998, turnover had improved slightly but incurred a further loss of #120,000.
Wilson tried to sell the business but an interested party withdrew its offer in November 1998 following prolonged negotiations.
PWC declined to comment.
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