System builder Quantum Microponents has closed one of its sites and let 28 staff go following the appointment of administrative receivers PwC last month.
Quantum previously had sites at Skelmersdale in Lancashire and Cannock in Staffordshire. The Cannock site has closed, while PwC has sold the Skelmersdale site to a firm called Quantum Micro as a going concern.
Michael Horrocks, joint administrative receiver at PwC, said: “The sale of the businesses at Skelmersdale has secured the employment of 71 staff, allowing the business to continue to trade and ensuring continuity of service to customers.”
PwC told CRN that Quantum went into administrative receivership partly as a result of a huge bad debt caused by a supplier insolvency and because it was also “loss making”.
Eddie Pacey, director of credit services at distributor Bell Microproducts, one of Quantum’s creditors, said: “We were aware that the company was having difficulties in August; we had heard that the company had sustained some bad debt and that it was also trying to re-finance.
“I’m disappointed that the directors didn’t speak to their principal suppliers to try and work through the problems as I believe the business could have been saved.”
PwC said a creditors meeting will be held over the coming months.
Keith Warburton, chief executive of the Professional Computing Association, said: “Quantum experienced very rapid growth a few years ago, but it seems to have fallen into the common trap of believing that its past success guarantees its future position. I presume creditors are willing to support the new company, otherwise its ability to trade could be severely limited.”
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