Chapco Group goes titsup
But IT Services arm rises from ashes in pre-pack
Directors at Chapco IT Services concluded a pre-pack administration on the same day the Leicestershire-based minnow was placed in the hands of receivers Mazars LLP, The Channel can reveal.
The Microsoft Gold and Citrix Silver reseller is part of the Chapco Group, which also included a facilities management, telecommunications, lighting and project delivery operations.
Mike Wellard, joint administrator at business advisory service Mazars LLP, told The Channel that the loss of a major customer on the facilities management side of the business brought the entire group down.
"Due to economic pressure [facilities management] lost a substantial client that caused issues for IT services because it had lent money to other companies in the group," he said.
Wellard confirmed that Chapco Group director Steven Batt had bought the IT Services arm in a pre-pack agreement on 29 May when Mazars was appointed.
Managing director at Chapco IT Services Batt said the business is now part of Optima Technology Solutions, a parent vehicle backed by venture capitalist Next Wave Partner.
"We have taken a good business out of a failing group structure," he said.
He said all trading assets had been transferred to the new owners, 25 staff jobs had been protected and the debts of the "vast majority" of "key suppliers had also moved across.
"There will be very few disgruntled [suppliers]", said Batt.
Pre-pack administrations are not generally the most desirable outcome for IT distributors as they often leave a trail of creditors out of pocket, as happened earlier this year with React Technologies. ®