Skye IT goes titsup
Reseller hits the wall after credit dries up
Skye IT has gone into administration today after running into financial difficulties, appointing Taylor Aitken to manage the wind-down.
The Chelmsford-based reseller is a standalone business but CEO Paul Swords, remains the director at other brands in the Skye Group including Skye UAE, Recruit, Direct and Training, each of which continues to trade.
"The company has struggled under the weight of recession," said Swords in a statement sent to The Register.
"The pressures encountered by a couple of difficult trading months in the challenging economic climate were compounded by our credit insurers no longer being happy to insure us due to late payments by some of our clients".
This meant buying capacity was "severely hindered", he added.
Taylor Aitken is preparing a statement of affairs and proof of debts for trade creditors, estimated to be around £500,000, but with all 40 staff laid off there appears to be little for the administrator to sell and liquidation is expected.
A number of distributors have reduced their exposure to Skye IT in recent months as concerns over the firm's future mounted.
Industry sources claimed Micro P was understood to be readying a petition to wind up the reseller as debts from June remained outstanding.
Incorporated at the start of 2004. According to Skye IT, the company is a Dell Certified Partner, VMware enterprise partner and HP Gold partner.
For calendar year 2009, Skye IT filed abbreviated accounts showing total assets less liabilities of £373,000.
Firms that file abbreviated accounts must satisfy at least two criteria including a yearly turnover no more than £6.5m, a balance sheet total of no more than £3.26m or an average number of employees below 50.
Swords was formerly sales director at Future Network Systems Sales which went under owing distributors millions. Previously, he had served as a sales director at Consultius Technology, which hit the wall in 2004. ®