Micro Direct rescued from administration

PC components specialist will continue to trade, despite mass redundancies

Ailing PC components reseller Micro Direct has been rescued from administration, ending months of online speculation about the firm's future.

James Kaye and Nick Morgan from Cheshire-based insolvency practitioner Cooper Williamson were appointed as joint administrators on 20 June.

The firm had been declared insolvent six days prior to this, which resulted in all of its staff being made redundant.

A representative from Cooper Williamson told ChannelWeb earlier today that the firm's business assets and Manchester premises have now been acquired by a company called Dormir UK.

"The company who acquired Micro Direct is in a similar line of business, and will continue to operate out of their premises," he said.

According to Micro Direct's most recent set of financial results, the firm posted losses of £59,524 and £131,232 in 2009 and 2008, respectively.

The firm's fate has been up for discussion on a number of online forums, following the closure of its Stockport branch several months ago.

Edward Pacey, managing director of EP Credit Management & Consultancy, said the writing had been on the wall for Micro Direct for some time.

"The business has been nearing the end of its life for some time. It's been considered high risk and likely to fail since 2009," explained Pacey.

Micro Direct and its new owners were unavailable for comment at the time of publishing.