CU coffer empty as Simmtech falls

Apple reseller Simmtech has been plunged into receivership six months after failing to satisfy terms of its creditors' voluntary agreement (CVA), leaving Computers Unlimited (CU) thousands of pounds out of pocket.

The Egham-based company, which trades as Performance Direct, was forced into receivership on 27 May due to ongoing financial difficulties. The problems date back to a CVA in November when it was discovered the company owed #1.3 million to its creditors (PC Dealer, 3 December 1997).

An industry source said: 'The bank was not happy about the original CVA, found the information surrounding it to be inaccurate and pulled the plug on it.'

John Alexander, head of corporate recovery and insolvency at Pannell Kerr Foster and receiver for the reseller, said he was involved in final talks to sell off the business to Rocket Hardware, which was recently set up to take on the assets of the business.

Bruce Cattell, Simmtech managing director, is employed at Rocket Hardware as a consultant.

Alexander asserted: 'We have received offers from three other companies, but have agreed with Rocket Hardware in principle. This will be subject to a contract.' Although he refused to disclose how much the assets would be sold for, Alexander said the sales proceeds would go to the distributors and suppliers.

But James Sanson, managing director of Computers Unlimited, said: 'I assume not much money will be paid out by the receivers.'

Sanson confirmed CU was not insured on Simmtech's debt at the time of the CVA, although the reseller had agreed to pay the distributor in 12 monthly instalments. However, the distributor stands to lose up to #100,000 of an initial debt of #129,000.

An industry source pointed out: 'In the last two years, the financial controls were not there, the accounting systems were not accurate and there was a substantial period when there wasn't a financial controller.' Cattel was unavailable for comment.