Receivers called into ailing Sam UK

Hybrid distributor Sam UK is facing the possibility of being shut down after a poor business year during which it was deserted by key sales staff.

Receivers KPMG moved into the Nottingham distributor two weeks ago to take control, which, according to sources, had only broken even in one month out of nine in the last financial year.

Shena Cormack of KPMG said: 'Sam UK has gone into a close down situation. (Director) David Wilson has been instructed not to discuss it with anyone. We will be contacting creditors next week.'

One staff member confirmed rumours that sales staff had split from the company and set up their own competing business in Nottingham. She claimed some of the Sam UK's key sales staff had been unhappy and left the company.

Manufacturers are believed to have been the main creditors, but a Computacenter insider confirmed that its distribution arm was owed about #80,000. It is understood Sam UK pushed for higher credit limits earlier this year, but was rejected by most in the industry.

Sam UK filed its last annual report for the year ended 1997 with a #12 million turnover and trade creditors of #2.4 million. It filed an after-tax loss of #160,000, down from a profit the year before of #204,000.

One industry source said recent problems for Sam UK stemmed from its decision to build larger premises next to its existing site, its downturn coinciding with having to meet the building costs.

According to Graydon's commercial credit report, the distributor's debt repayment fluctuated monthly. While there were no repayments in June and July, bills were met in full in August.