Storage Options leaves channel out of pocket

Distributor Storage Options & Supplies has gone into liquidation, owing an estimated #600,000 to channel players.

MD Alexander Bell started Storage Options in 1994. Six months later, he signed a deal with VLSI International, taking a 40 per cent equity share. In its 1995/96 financial year, the distributor incurred debts of #120,000 and lost #50,000 through theft.

But at a creditors? meeting last week, the creditors? list stated that VLSI was owed #150,000 and has a debenture on Bell?s house. Other channel creditors included Ideal Hardware, owed #18,168; memory distributor Dane Elec, #18,579; Lion Computer Distribution, #20,309; and Micro Computers #24,780.

According to one creditor who attended the meeting, Bell was asked about the company?s exact relationship with VLSI. According to Bell, VLSI initially provided a credit facility of up to #250,000, which rose to #375,000 in May 1996.

Bell lost #100,000 of DRam memory chips in a raid in February, and the following month, Microsoft stopped Storage from selling its software. A flood in June damaged stock worth more than #30,000 ? its remaining stock was moved to VLSI?s premises.

Auditor Pannell Kerr Forster will hold an investigation into Storage. At the creditors? meeting, Bell signed an affidavit saying VLSI told him to buy stock that is still unaccounted for. But a VLSI representative said it had not received a penny.