Light Computer Systems ceases trading as debts remain unpaid
Distributor goes into voluntary liquidation while creditors consider legal action
Troubled distributor Light Computer Systems (LCS) has officially ceased trading and may face legal action from multiple creditors looking to recover outstanding debts.
The announcement follows the Yorkshire-based components and systems distributor’s continued failure to repay debts, one of which is believed to total just under £30,000 (CRN, 14 August).
Situl Raithatha, director at LCS’s appointed insolvency practitioner Springfields Business Recovery and Insolvency, told CRN: “I can confirm that LCS has ceased trading and that we have been given instructions by it to place the company into creditors voluntary liquidation.”
Raithatha added that LCS, a subsidiary of KS Holdings and sister company to PC Outlet Ltd, will hold a creditors meeting on 5 September.
Eddie Pacey, director of credit at Bell Microproducts, told CRN the outlook looks bleak for creditors.
“We don’t think we will see any of the debt returned to us,” he said. “However, we will still be taking legal action against LCS until we know the outcome of the creditors meeting.”
Nitin Joshi, founder of business advisory service Channel Money, told CRN: “A few of my clients are exposed, but none too heavily. Being optimistic the return to unsecured creditors looks dismal, but in all probability it is nil.”
Fritz Johnsen, financial director at storage distributor Hammer Distribution, told CRN: “We had no response to the letter our solicitors sent to LCS, which gave it seven days to pay. I don’t believe we ever had any formal offers of a debt repayment from LCS and I wouldn’t expect we will get any of the debt back now.”
Charles Blackshaw, partner at VAR C and M Computers – an LCS customer – said: “LCS messed us about with hardware deliveries on occasions. This is a sad announcement, but if LCS doesn’t pay bills then problems will inevitably occur.”
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