Channel warned over Bridge fate
UK system builder goes into administration after falling behind in payments to creditors
In a case that should act as a warning to other channel players, a UK system builder has been placed into administration after falling behind on its payments to creditors.
Wiltshire-based Bridge Technology Group went into administration last week after its creditors applied to the High Court to have the company wound up.
Although the creditors cannot be named for legal reasons, insolvency specialist Vantis has been appointed as administrators. Vantis told CRN it is trying to sell the company’s assets.
Nitin Joshi, partner at Vantis, said: “Our priority is to maximise what we can realise for the assets. There is interest in the goodwill and maintenance contracts. We are reminded that VAR directors need to take early, decisive action. More’s the pity in this case because the company has been around for quite a while, steadily growing in its market.
“As stock turnover is quick, and VARs buy-in on a back-to-back basis, distributors will increasingly protect themselves and their assets,” he said.
Joshi also represents the creditors, who issued a statement that said: “We support the channel in a very significant way and, indeed, extend levels of credit far beyond the worth of the balance sheets, but we do need to protect our assets.”
Stephen Alambritis, head of parliamentary affairs at the Federation of Small Businesses, told CRN: “We implore companies to have a good credit system so that not only are they paid on time, but that they also pay their creditors on time. All it needs is for one creditor to have the courage of its convictions to apply to court.”
Despite being contacted by CRN, Bridge Technology Group was unavailable for comment.
>> Further reading: