Ailing Memsolve falls into clutches of administrators

Widnes distributor Memsolve has fallen into administrative receivership with debts of up to #5 million following weeks of speculation over the its future.

Dermot Justin Power and Charles MacMillan of BDO Stoy Hayward were appointed administrative receivers to the distributor on 11 February. The move followed the removal of credit by the company's bank, NatWest, and the departure of company director Rob Swire at the end of January.

Power, corporate recovery partner at BDO, said: 'It is disappointing that such a forward-looking company should have these problems. Strenuous efforts were made to preserve the company in its entirety. We are exploring all possible avenues for the protection of employment and the survival of the economic parts of the business.'

As creditors and suppliers moved in to recover stock, possible suitors were assessing which parts of the business, if any, were viable to buy.

Memsolve's creditors are understood to include Datrontech, Ideal Hardware, Enta Technologies, Compaq and Microsoft.

The trading position of Hexagon Information Technology Ltd, of which Memsolve is the holding company, was unclear. Hexagon IT acquired the Atlantic brand from Electro-Wide before it fell into receivership last March (PC Dealer, 19 March 1998).

One source said: 'The problem for any buyer will be to distance itself from the Memsolve name'. Another source added: 'You have to ask who would buy it. There is no clear view on the right way forward - there are so many grey areas.'

A source at HM Customs & Excise said the VAT fraud inquiry would continue despite the arrival of receivers at Memsolve.