Adept is left holding stock as Geofox fails

Handheld computer specialist Geofox is sinking into liquidation leaving its manufacturer with a warehouse of potentially worthless stock.

The specialist distributor, which has already made 10 employees redundant, appointed Grant Thornton to assist in the liquidation at the creditors' meeting to be held on 27 November.

George Grey, chief executive, founder and major shareholder, of Geofox said the company had run out of money and was unable to secure additional funding from its backers. He added that the collapse of the company had left its manufacturer, Adept Group, with 'a lot of custom-made stock' to build the handheld Geofox-One computer.

Grey said: 'If the channel is not there any longer, it will not have any significant value.'

Adept Group refused to comment until after the creditors' meeting, but acknowledged it had been left with Geofox stock.

The company's collapse has also left London reseller Ucon Limited facing the prospect of paying for service and support initially provided by the company.

Grey stated: 'We had a business plan that was requiring investment of #2 million to take the company to the next stage.'

But he admitted: 'We were being funded on a monthly basis by private individuals and it reached a point where they were unwilling to keep funding in this way.'

Grey said a level of debt would not be disclosed until the creditors' meeting.