Spot creditors will lose out
Creditors have little chance of getting their money back
Creditors of Spot Distribution have little hope of getting their money back from the defunct distributor following last week’s creditors meeting.
Insolvency firm DS Insolvency Services, which was originally appointed to place the distributor into liquidation (CRN, 26 June), confirmed the outlook was bleak for creditors.
Martin Williamson, director at DS Insolvency Services, told CRN: “Spot is now in liquidation. We have put a liquidation committee in place that will turn its assets into cash that will be distributed to the creditors.
“They [the creditors] won’t get all their money back and it is too early to say how much money will be paid out.” He added that the total figure Spot owes to creditors is £998,000.
David Galton-Fenzi, group sales director of distributor Zycko, a creditor of Spot, said: “I think smaller creditors such as Zycko are not expecting much money back.”
Alistair Brown, managing director of VAR Incurion, also a creditor, said: “An initial investigation into Spot will take three months, but it could take between six and 12 months before we know [about any repayments from Spot].”
Stuart Frith, a partner at solicitors Brook North, which is representing vendor Foundry Networks, another of Spot’s creditors, said: “We will have to wait for the liquidators to complete their investigations.”
CRN understands that Spot’s other creditors are believed to include distributors Comstor, Computer 2000, Micro Peripherals, OpenPSL, and vendor partner Westell.