Distributors demand answers over fallen Zentek

Creditors left out of pocket as education VAR enters administration four weeks after asset sale

Angry creditors of Zentek Solutions are demanding answers after the education-focused VAR entered administration four weeks after its assets were sold.

London-based reseller Tribune - a fellow education IT supplier - snapped up Zentek's assets in late September, safeguarding the jobs of about 30 staff.

On 24 October, Leeds-based Zentek entered administration, realising the fears expressed by creditors at the time of the asset sale.

Nitin Joshi, founder of ChannelMoney (pictured), who is acting on behalf of a number of the distributors involved, said the firm's asset sale and subsequent administration had left creditors with a number of unanswered questions.

"A lot of the creditors are unhappy with the manner of how the disposal took place," he said. "I will be asking the administrator to investigate a number of things, such as the terms of the sale, where the money went and whether there was an independent valuation."

Eddie Pacey, managing director of EP Credit Management and Consultancy, said: "From a creditor perspective, the news that activity ceased and assets were transferred in this case some four weeks before official placement into administration does raise concerns and creditors should press for answers."

He added: "I have too often seen trade and assets hived off to others for little or no money and a deliberate policy at times of ordering from suppliers knowing full well payment is unlikely to be made."

John Birkinshaw at Geoffrey Martin & Co - which is handling Zentek's administration - said he is in the process of examining Zentek's books to glean more information for creditors.

"A note only went out to creditors on Friday so it is still very early doors," he said.