Tag PC sinks to sister's depths in liquidation

A disagreement between Multiworld Trading Company and Barclays Bank has left the hardware distributor floundering in debts of more than #200,000 after it fell into liquidation.

Sister operation mail-order company Tag PC Technology is set to follow the Edmonton-based Multiworld Trading into liquidation within the next few weeks.

Ahmed Moustafa, MD of both businesses and head of active company London Computer Auctions, based at the same address, said: 'This happened because the bank withdrew our overdraft facilities on the three companies.'

According to a report issued after a creditors' meeting held on 1 April by liquidators Panos, Eliades, Franklin and Co, Multiworld first hit trouble last summer due to Barclays' passing unauthorised cheques. Later, cheques which should have been debited to the company's sterling account wound up in a smaller foreign account facility.

In January, Moustafa was asked to move his accounts to another branch, but funds began to decrease with each credit until the company could no longer trade. On 4 March Panos, Eliades, Franklin and Co was contacted by Moustafa to place the company into liquidation.

A source said: 'It was a surprise when Multiworld stopped trading. It had been going a number of years.'

According to the creditors' report, Multiworld Trading owes #244,023 in total including #41,265 to Dane-Elec, #24,710 to CHS Electronics and #28,100 to London Computer Auctions.

Moustafa said London Computer Auctions would continue to trade because it was not reliant on creditors and distributors.