Skye IT's trade creditors look set to recover little of their debts as the fallen reseller commences liquidation proceedings.
The Chelmsford-based HP Gold partner folded last month with trade-creditor debts of about £1.1m.
At the time, the insolvency practitioner overseeing Skye IT's wind-down, Taylor Aitken, was hopeful that the firm's large debtor book could see creditors recover up to 30p in the pound.
RSM Tenon was formally appointed as liquidator at a creditors' meeting on Tuesday.
A representative at the insolvency practitioner said any book debts will be returned to RBS, with whom Skye IT had an invoice discounting facility. Skye IT's assets, which include office furniture, are currently being assessed but it is unlikely trade creditors will recover a substantial portion of their debts. Some distributors are understood to be owed as much as £150,000. Money owed to Skye IT directors is also included in the £1.1m sum.
As recently as last year, Skye IT was talking up ambitious growth plans. It had 23 staff.
Skye IT's chief executive, Paul Swords, was also a director at VAR Future Networks Systems, which collapsed owing several million pounds to distributors.
Eddie Pacey, managing director of EP Credit Management & Consultancy, said: "The original assumption was that creditors would see around 30p in the pound but it now appears they will see zero.
"The company filed abbreviated accounts and without detailed management accounts it's not easy to say why this is but invariably realisable book debt values always fall short. With unsecured creditors of over £1.1m, some major suppliers may have lost anything up to £150,000."
Pacey added: "The sector is loaded with businesses where almost all the total asset value rests with trade debtors; the quality and constitution of these and management of them and the business, is critical to survival. Longevity and accreditations are no guarantee."
A summary of what you get if you subscribe to our premium market intelligence service
Matthew Polly says CrowdStrike is looking to branch out from the UK and into mainland Europe
Southampton-based VAR states that further acquisitions are in the pipeline
With UKFast launching a public cloud consultancy, Tom Wright asks if this is the way forward for all local hosting providers