Micro-P seeks to wind up I Am IT

London reseller says it owes £700,000 and will appear in court next week

Reseller I Am IT is exploring its options after being served with a winding-up petition by distributor Micro-P.

The London-based firm - which works with vendors such as EMC, Microsoft, VMware and NetApp - began working with insolvency practitioners Aspect on Friday. Court officials confirmed to CRN that Micro-P, which is one of the firm's largest creditors, had served it with a winding-up petition and that it is due to appear in Manchester County Court on Monday.

The reseller told CRN it owes its creditors around £700,000 but insisted all of its staff have been paid up until Friday when they were let go.

Around seven employees in its then-20-strong team were laid off in April but its managing director Leo Smuga said he hopes about three will remain if a pre-pack deal with another firm in the I Am IT Group goes ahead. Nothing can be decided upon for sure until the court hearing next week, CRN understands.

According to the latest figures filed with Companies House, for the 12 months ending 31 March 2013, turnover was down 50.62 per cent to £6.33m. The firm posted a £640,690 loss compared with a profit of £438,601 the year before.

The loss was driven mainly by the group's disposal of Autodata Products which, according to a Director's Report document, put a £655,606 hole in its results. The report added that trading conditions had been "difficult" due to the "general state of the economy" but that it planned to grow by boosting staff numbers and customers.

Smuga told CRN his company's troubles were essentially based on cash flow problems, prompted by a series of unforeseen events.

He pointed to an ill-fated BBC deal in which kit it was shipping to the broadcaster's Russian base got held up in customs, which eventually cost the firm £25,000, as being a key problem as well as unforeseen problems signing up a big new account.

"We were let down by a few people," he said.

Micro-P declined to comment.

UPDATE: Since this story was published, Autodata Products got in touch to clarify its association with I Am IT.

It said: "In March 2013, Autodata Products and its holding company, Axion Holdings, split by statutory demerger to pursue their own separate ways under independent management and ownership. The latter set up in new premises trading as I Am IT under the directorship of Leo Smuga. In October 2014, I Am IT was placed in administration.

"The figures mentioned in the article as filed with Companies House for the twelve months ending 31 June 2012 and for a reset period of nine months ending 31 March 2013 relate to the combined company status prior to the demerger.

"Following the demerger, Autodata Products retained the existing registered company and premises. Autodata Products was established in 1986 and continues to be led by Dominic McLoughlin who has served as one of its Directors since 2008. The business filed a turnover of £6,719,976 with profit of £313,828 for the 12 months ending 31 March 2014."