Crown financial woes plague MD

Malcolm Jamieson, MD of Crown Computer Products, could face legal action after a creditors' meeting revealed the full damage caused by the reseller's fall into administration.

The meeting, which took place on 7 April, was held by Crown's administrator, BDO Stoy Hayward, and revealed the company owed nearly #4 million to creditors.

Lancashire-based Crown, which trades as BasCrown, first fell into voluntary liquidation on 16 January.

One source commented: 'In the past three months, the directors have taken what they can under the titles like consultancy, but his has been done at the creditors' expense.'

Another source said: 'The administrators are considering legal action and through consideration fees Jamieson has taken about #1 million out of the company.'

Paul Keely, manager at BDO Stoy Hayward, refused to comment on pending legal action, but said: 'All the proposals put forward by the administrators have been unanimously successful.'

It was also confirmed that The Big PC Company - owned by Jamieson - followed Crown into liquidation just two weeks later, was Crown's biggest creditor, and was owed #400,000 by the reseller.

The situation was further intensified by the emergence of Barkai Ltd, of which Jamieson is a director, which has a debenture in favour of Crown Computer Products.

A source said: 'BasCrown was selling kit to The Big PC Company, which was then sold to the user, so all the profits made must have gone back into Barkai which has the debenture.'

Although a representative for Barkai attended the creditors' meeting, Jamieson did not.