Logcom fails to find buyer
Sixty workers made redundant as group ceases trading
Troubled reseller Logcom Group was denied a last-minute lifeline after a buyer could not be found. All 60 employees have been made redundant and the group is no longer trading.
Logcom Group and its subsidiaries Logcom Solutions, MICG, People in Pictures and Status Group initially went into administration in February. But the group had hoped to be sold as a going concern.
Accountancy giant PwC was appointed as administrator. A PwC representative told CRN: "There were not enough funds to continue trading, and we couldn't find a buyer.
"We tried to sell it as a going concern but the talks fell through at the last minute."
Nitin Joshi, partner at insolvency specialist PKF, said: "The channel will be highly suspicious of acquisitive VARs and will look a lot more closely at how they are managed and funded and the impact any acquisitions will have on the overall credit requirement of distributors."
Joshi added there were structural problems with Logcom's strategy, which left a trail of unsatisfied VAR acquisitions. "No money will be coming back to creditors," he said.