React Technologies rises from ashes of burning balance sheet
Pre-pack administration deal wipes off suppliers' debts
React Technologies has executed a textbook dive into administration followed by a phoenix-like rise from the ashes - and now trades as React Enterprises having wiped off suppliers' debts in the comeback.
The network reseller, led by boss Jess Thompson-Hughes, called in receivers Leonard Curtis on 16 March and installed Mark Colman and John Titley to bring the business out of administration on the same day.
A spokesman at Leonard Curtis confirmed a pre-packaged administration maneuver was performed, and claimed the process had "rescued jobs" for workers. He refused to comment further.
React Enterprises - the vehicle used to underpin the operation - was incorporated in 2005 by Thompson-Hughes and fellow director Stephen Hook, trading out of the same Hampshire-based offices.
It has posted one abbreviated set of trading accounts for the year ended March 2011 showing a small working capital and net worth.
React Technologies posted a loss of £100,000 on turnover of £2.2m in the year to 31 March 2010 but it reported abbreviated numbers in fiscal 2011. Sources say that suppliers Mayflex, Avnet Technology Solutions and Meru were all owed money by React Technologies.
John Toal, veep and UK country manager at Avnet TS, said: "Fortunately this is not a practice that we see too often in the channel."
"We believe it’s important to work in partnership so that challenges can be discussed at the very earliest opportunity and a solution found," he said, adding this is the reason it offers a range of financial services to partners.
React Enterprises owner Thompson-Hughes did not respond to calls for comment but a spokeswoman confirmed that all other directors have left the firm. ®