Osmosis calls in the administrators
Owes £5 million
Troubled distributor Osmosis has gone into administration after the breakdown of its rescue plan. The Brentford company has been under the control of administrators Pannell Kerr Forster since Thursday. It is believed to owe around £5 million. Last month Osmosis outlined an informal agreement to save the group, saying it would abandon its PC hardware business and concentrate on profitable grey broking, software and Internet hardware server operations. But it is understood that financial documents shown to creditors failed to instil confidence that Osmosis could honour its promises. Eddie Pacey, Ideal Hardware credit manager, said the figures he saw last week on the state of the company's affairs "did not give me comfort that the company would be able to pay off all its creditors within 12 months". Pacey said he felt there was a "substantial weakness" in Osmosis' trade debtor ledger. Other creditors are believed to include Microsoft. Last month Osmosis said it would continue as an OEM for the software giant. But The Register has learned that Osmosis had been having difficulties renewing its distributor's licence, which was due to expire in June. John Fenton, Osmosis MD, was unavailable for comment.®
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