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Articles about Insolvency

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UK Channel insolvency rates soar to nine-year high

Insolvency rates in the UK channel are at the highest level seen since the dotcom bubble burst, official figures have confirmed. The UK economy is looking shaky: inflation is rising, government is forging ahead with harsh public sector cuts and High Street retailers are going into meltdown; parts of the channel are also showing …
Paul Kunert, 08 Jul 2011
Dell's Converged Blade Data Center stack

Hack-smacked Alphadex bought by iRack Ltd ... or is that Networks Ltd?

Brit data hosting biz Alphadex has been rescued from administration and bought up by a new firm, though there seems to be some confusion over just which firm is its white knight. Alphadex, which went into administration after British Gas issued a winding up petition for unpaid bills last month, said in an announcement on its …

Dip in Blighty's titsup tech firms... but what about the ZOMBIES?

An eerie calm has descended in the UK technology channel* as company failures stabilise and the recession lifts, but with legions of undead corporate corpses stalking the land, an insolvency storm could now be brewing. That was the prognosis of experts in the credit and insolvency sectors, a week after UK GDP figures from the …
Paul Kunert, 01 Nov 2013
The Register breaking news

BenQ Mobile files for insolvency

Taiwanese mobile firm BenQ Mobile has filed for insolvency. Parent company BenQ said in September it would stop funding the mobile business. But questions remain as to the fate of the German business. A spokesman for insolvency administrator Martin Prager told Reuters that he was still negotiating with several interested …
John Oates, 29 Dec 2006
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Pension quango's £18.5m project FINALLY goes live... 2 months late

An £18.5m project carried out on behalf of the UK's Pension Protection Fund (PPF) has finally gone live - two months late. A comprehensive IT infrastructure overhaul and modernisation of hardware and software was due to be installed and running by 28 February. However, The Register has learned that CGI missed both the February …
Gavin Clarke, 01 Jul 2014

KPMG: UK tech supplier takes on 'majority' of customers from titsup Glasshouse

More than half the workers at defunct storage consultancy Glasshouse Technologies have been chopped after administrator KPMG failed to find an investor to secure the business as a going concern. Glasshouse simply ran out of cash and called in the receivers late last month just days before it was due to defend itself against a …
Paul Kunert, 23 Apr 2014

Online bookies must keep punters' cash in separate account

Licensing conditions proposed by the Gambling Commission may not adequately protect customers against the risk of losing their money or credits if gambling operators become insolvent, an expert has warned. The Commission is consulting on draft plans that, if introduced, would oblige remote gambling licensees, except ancillary …
OUT-LAW.COM, 27 Sep 2013
Bitcoin bloodbath

MtGox, that bastion of unregulated e-currency Bitcoin, turns to Texas judge for protection

The embattled MtGox Bitcoin exchange has been thrown a lifeline by a US bankruptcy court in the northern district of Texas – which has shielded the company from litigation. Judge Harlan Hale granted a motion [PDF] to place the company under Chapter 15 bankruptcy, a classification that will help it fend off, for the time being, …
Shaun Nichols, 11 Mar 2014
The Register breaking news

Now draft biz guillotine law triggers info privacy watchdog

There are insufficient data protection safeguards built in to proposed reforms to the EU's insolvency law framework, a privacy watchdog has said. In a recently issued opinion into the European Commission's draft Insolvency Regulation, the European Data Protection Supervisor (EDPS) raised concerns about the mandatory publication …
OUT-LAW.COM, 15 Apr 2013
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Channel firms, rejoice: You're not going out of business nearly so often

Channel insolvencies have fallen for the third consecutive quarter, according to official stats from credit reference agency Graydon UK. Sixty-four tech suppliers hit the wall in Q1, down a whopping 28 per cent on the same period a year ago. Broken down by type there were 45 voluntary liquidations, four compulsory liquidations …
Paul Kunert, 08 Apr 2013

Brit IT industry comes up for air after recession

There are fewer corporate pile-ups on the channel highway than at any point in more than a decade and a half, official stats from credit reference agency Graydon UK reveal. Some 31 firms bit the dust during the second quarter of calendar '14 - the joint lowest rate since 1998 - way down on the 89 recorded a year ago or the 61 …
Paul Kunert, 09 Jul 2014
The Register breaking news

Insolvency levels show upturn in downturn

UK insolvencies have risen sharply in the past quarter as the recession starts to hit small businesses. But the headline figure is distorted by one group that accounted for 729 separate managed services businesses that all went into administration. There were 4,607 compulsory liquidations and creditors' voluntary liquidations in …
John Oates, 06 Feb 2009

Burnt-out Comet's VC backers are looking for more cash

The private equity firm involved in Comet's costly crash is back in the market and trying to convince financiers to part with hundreds of millions for a new investment fund. Henry Jackson, boss of OpCapita, the venture capitalist which paid £2 for the British retailer in November 2011 before sending it down in flames a year …
Paul Kunert, 11 Nov 2013
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Crack Euro banker team to probe whether virtual currencies should be regulated

The European Banking Authority (EBA) will create a taskforce to advise it on whether virtual currencies should be regulated. The watchdog said that the taskforce will be created before July and have the objective of answering the question of whether virtual currencies "can and ought to be regulated". The taskforce will analyse …
OUT-LAW.COM, 04 Mar 2014

US Senator lobbies feds to BAN BITCOIN

A United States Senator is demanding that US regulators ban the Bitcoin cryptocurrency. West Virginia Democrat Joe Manchin said that the currency helps facilitate criminal activity and could harm the US economy if it is allowed to continue to circulate without regulation. Inthe letter addressed to, among others, the heads of …
Shaun Nichols, 27 Feb 2014

Tech Data: We need ethics, and we've found the right man

It comes to something when a corporation is forced to appoint a chief ethics and compliance officer but that is exactly what distributor Tech Data has done, weeks after completing its costly accounting investigation. Fourteen-year company veteran Jean-Paul Durand – who most recently served as TD's vice president, assistant …
Paul Kunert, 18 Feb 2014

UK's dead monster iPad gumble-maker COMES BACK TO LIFE

It's been quite a post-Easter week for the Brit firm behind iPhone and iPad accessories maker GEAR4: it went into administration, axed most of its UK workforce, and has risen again in Hong Kong. Disruptive Ltd, which makes wireless speakers, docks and a range of Angry Birds accessories stocked at all major UK consumer …
Paul Kunert, 23 Apr 2013

UK tech channel in RUDE health as bankruptcies dip in Q1

It's time to crack open the bubbly: corporate fatalities in the UK channel have fallen for the fourth consecutive quarter, official stats from credit rating firm Graydon UK reveal. Some 61 companies bit the dust in the first three months of the year versus 64 for the same period of 2013, indicating that the UK IT industry has …
Paul Kunert, 04 Apr 2014
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UK gov probes Comet crash: Public, private sectors LOST £257m

The Department for Business, Innovation and Skills plans to probe the administration of Comet, whose collapse has left the private and public sector out of pocket to the tune of £257m. The Insolvency Service is to launch the investigation after receiving numerous complaints from MPs just as the doors close on Comet's last 49 …
Paul Kunert, 18 Dec 2012
Ford Sync

Ford to dump Microsoft's 'aggravating' in-car tech for ... BlackBerry?

Ford Motor Company will part ways with Microsoft for the next generation of its Sync in-car infotainment system in favor of technology from Canadian rival BlackBerry, sources claim. According to a report by Bloomberg, switching from Windows Embedded Automotive to BlackBerry's QNX real-time OS will both save Ford money and …
Neil McAllister, 25 Feb 2014
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Government rejects call to limit insolvency firms' fees

Minister for Employment Regulations Pat McFadden yesterday rejected calls to set controls on how much administrators can charge when a company goes into liquidation. MP Gordon Banks called for the minister to set maximum limits and reduce fees charged by administrators and receivers handling company collapses. Fees are worked …
Team Register, 10 Mar 2009
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Don't wait to check your parachute until you're out of the plane

Business failure and insolvency are so rarely a cheery subject. But it's kinda funny how frequently companies hit by high-value losses almost immediately say "we had insurance", as if to say the loss will not be felt too hard. It’s tempting to boast that your debt is insured when it isn’t: it makes the loss seem less troublesome …
Eddie Pacey, 17 Jun 2013
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Quadrant Visual Solutions goes into liquidation

Quadrant Visual Solutions (QVS) has shut up shop after 25 years in business, having succumbed to the oldest business-killer of all: it ran out of cash. The Derbyshire-based AV integrator and IT reseller ceased trading on 7 June and a credit meeting has been called for the 28 June. Former XMA IT Solutions director and QVS …
Paul Kunert, 18 Jun 2013

IT contractors lose thousands as 2e2 collapse hits recruiter

Tech-sector freelancers are thousands of pounds out of pocket after the collapse of IT integrator 2e2 wiped out recruitment agency Populo Resourcing, The Channel can reveal. The contractors, recruited by Populo to work on various IT projects for 2e2, had their work cancelled days after the integrator crashed. Some say they are …
Paul Kunert, 18 Mar 2013

Pentos Systems goes titsup

Hampshire-based reseller Pentos Systems has given up the ghost and called in the administrators after nearly 20 years in business. The HP Gold partner, which held a specialisation in workstations, is now in the hands of corporate recovery and insolvency practitioner Irwin Insolvency. Gerald Irwin is the administrator and John …
Paul Kunert, 03 May 2012
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About to outsource your IT? Read this first

Whenever a major service provider runs into financial difficulties it is undoubtedly an extremely unsettling period, not least for the workforce, customers and management. Tough decisions need to be made in very tight timeframes which often don't allow much time for strategic planning. Financial distress is one of the ever- …

Amazon-bashed HMV calls in administrators, seeks buyer

HMV sought insolvency protection last night, becoming the second big name retailer on the battered British High Street to come close to defeat in the first few weeks of 2013. This comes after the music retail giant spent several years struggling to turn its business around as customers have increasingly shifted to shopping …
Kelly Fiveash, 15 Jan 2013
Square Group new premises

Comet brand yanked from its grave: Tycoon vows to open EIGHTY new stores

Electronics retail entrepreneur Clive Coombes is trying to revive the Comet brand name by launching 80 stores over the next two years - and is looking for foolhardy brave investors to support him. In his blog, written in the third person, Coombes, who tried but failed to buy Comet from administrator Deloitte, revealed he has …
Paul Kunert, 19 Aug 2013
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Woohoo! UK IT channel insolvencies plunge to pre-credit-crunch levels

Insolvencies in Britain's IT distribution channel have plummeted to pre-global economy meltdown levels according to credit reference agency Graydon UK. Some 57 companies went under in the fourth quarter of 2012, representing a fall of more than 35 per cent on the same period a year ago when 88 businesses went to the wall. The …
Paul Kunert, 10 Jan 2013
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Restatements HURT. Just ask global mega distie Tech Data how it's going for them

The world's second-largest wholesale distributor of technology products, services and solutions, Tech Data, was not the first firm to restate its financial results – and it may not be the last. But in a post-Enron world, with the associated heavy controls and accounting rules introduced after that massive accounts fraud scandal …
Felipe Costa, 14 Aug 2014
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2014: The year of the cloudy biz bankruptcy... or maybe it isn't?

Once again the channel has proved to be a hardy bunch as insolvencies remained pretty much stable in 2013, despite a meltdown in some areas of tech infrastructure spending. Some 293 resellers bit the dust in the previous calendar 12 months, versus 285 in the previous year: a 2.8 per cent rise. 66 hit the wall in Q4, up from 57 …
Paul Kunert, 23 Jan 2014
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Misery ending? UK reseller insolvencies may have bottomed out

Insolvency rates in the UK channel were back to pre-recession levels in Q2, according to official stats from credit reference agency Graydon UK. The picture is remarkably different to a year ago when reseller failures reached a nine-year high with 99 firms hitting the wall, a pattern that continued until the end of Q1 2012 when …
Paul Kunert, 02 Jul 2012
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Toner slurping biz Lasertech runs out of ink

Toner recycling firm Lasertech UK has called a creditors meeting after shutting up shop. The gathering, set up by licensed insolvency practitioners Parkin S Booth, is due to convene at the Queen Hotel in Chester on 8 March. A vote will be held to determine if PSB will be nominated as liquidator, a spokeswoman at the firm …
Paul Kunert, 20 Feb 2012

'Zombie hunter' task force unleashed on the UK tech biz

A special force of crack zombie hunters swings into action today to rid old Blighty of the shuffling scourge of undead firms surviving only to pay the interest on debts. The mission of the task force, whose formation was revealed by The Channel last month, is to build a profile of private equity backed businesses in the IT …
Paul Kunert, 13 May 2013
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'Petrified' insurers slam wallets shut as more resellers go titsup

The small sequential rise in reseller insolvencies in Q3 - in line with seasonality - will do nothing to calm credit insurers' general uneasiness about the IT sector. Data from credit reference agency Graydon UK, shows 75 channel firms bit the dust during the summer quarter, up from 64 in Q2 but dramatically lower than the 93 of …
Paul Kunert, 23 Oct 2012

Vodafone Oz taken to court by dealer

Vodafone Australia has something else to worry about besides its dwindling customer base and fragile network, as dealer BD Mobile suing the carrier for unpaid commissions. BD Mobile, also known as Besyl, was one of Vodafone’s exclusive dealers but was placed into voluntary liquidation in February. Boutique insolvency firm …
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Sumlock Electronics faces liquidation

North East-based family-run reseller Sumlock Electronics is to be liquidated, according to a filing to Companies House. The VMware, NEC and Sophos partner, which was incorporated in 1976, is understood to have encountered terminal cash flow difficulties in recent months that forced it to shut up shop. Business advisor Walsh …
Paul Kunert, 28 Feb 2012
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Mini retail empire Micro Anvika implodes, one shop to be shopped

The administrator of Micro Anvika is continuing to trade the operation out of two stores on London's Tottenham Court Road - one of which will close within weeks - as it mulls over offers for the remnants of the retailer. Back in late September, management at the veteran retailer called in business advisory service and insolvency …
Paul Kunert, 12 Nov 2012

Integrator 2e2 axes 319 UK staff, halts pay cheques - insiders

Troubled integrator 2e2 Group has let go 319 UK sales and admin staff and, to add insult to injury, their pay for last month is being withheld, sources claim. After weeks of negotiations by investors and bosses to keep the debt-laden business afloat, the decision was taken yesterday to call in administrators FTI Consulting for …
Paul Kunert, 29 Jan 2013
hands waving dollar bills in the air

Fewer titsup firms, more titsup people

Fewer businesses went into insolvency in the first quarter of 2010 than last year, but a record number of individuals were declared insolvent. In total there were 35,682 individual insolvencies in England and Wales in the first quarter of 2010 - up 17.9 per cent on the same period of 2009. Bankruptcies were down 10.7 per cent, …
John Oates, 07 May 2010
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Tears, laughter and bankruptcy: How not to go bust

Bankruptcy? You don't know whether to laugh or cry. It was a lunchtime tech awards ceremony in the West End many years ago. The trophies were polished, the golden envelopes were ready to be opened to gasps of joy and waiters were circulating with the canapes and fizz. Suddenly some rather large men in suits appeared among the …
Steve Bell, 30 May 2013
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Channel body count hits dotcom implosion high

The channel body count in 2011 reached a high not seen since the dotcom bubble burst, stats from credit reference agency Graydon UK reveal. In Q4 88 firms collapsed, up nearly 30 per cent year-on-year, which took the tally for the whole of 2011 to 356, up by almost one third on reseller fatalities in the previous twelve months …
Paul Kunert, 07 Feb 2012
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Some go gracefully in the Channel - and some go messily

Liquidators of defunct reseller Skye IT have confirmed to El Reg that the firm ran up massive debts of £1.9m. As revealed last month, the Chelmsford-based dealer decided to call it a day after encountering insurmountable cash flow difficulties and laid off all 40 staff. A meeting of creditors was held at the London offices of …
Paul Kunert, 18 Nov 2011
Administration

Vultures circle crash-landed UK giant 2e2 after top brass axed

The vultures are circling fallen channel giant 2e2 with an asset sale expected for the UK biz in light of the hefty redundancies made yesterday. As reported yesterday, debt-saddled 2e2 Group laid off 22 per cent, or 319, of its 1,442 workers in Blighty, and placed ten UK subsidiaries into administration. The Channel can today …
Paul Kunert, 30 Jan 2013

Why I'm sick of the new 'digital divide' between SMEs and the big boys

Recently I have been spending most of my time with enterprise CIOs and vendors' "product owners"; their dismissiveness of the needs of small and medium-sized businesses has finally got to me. As a rule, talking about the needs of corner cases is boring to the masses, but today I just need to get up on my soapbox and talk a …
Trevor Pott, 12 Jul 2013
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Dixons keeps wolves from the revolving credit facility door

Dixons Retail has inked a £300m revolving credit facility with its financial backers that should ease the cash flow of Blighty's largest retailer. The deal extends Dixons current facility, which was due to mature next year, until the end of June 2015. Sources say this will provide short term guarantees that should keep the …
Paul Kunert, 25 May 2012
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16 Sony Centres jump the tracks, liquidator hits the brakes

RSM Tenon has been appointed to liquidate a batch of 16 Sony Centres that ran into insurmountable financial difficulties. The franchises operated by Bascam and Headsun, which formerly traded as Shasonic UK and Shasonic Centres respectively, were formally placed into administration on 21 February with RSM handling affairs. A …
Paul Kunert, 06 Mar 2012
The Register breaking news

Bipartisan Senate group proposes green cards for tech grads

Pigs were sighted flying over Washington DC on Sunday when a bipartisan group of eight US senators released an immigration reform plan that would, among other things, grant permanent-resident status to foreign nationals who receive advanced tech degrees from US universities. "It makes no sense to educate the world's future …
Rik Myslewski, 29 Jan 2013
The Register breaking news

Ionica struggles on against insolvency rumours

Struggling fixed wireless phone company Ionica is doggedly denying rumours today that it has hit a brick wall, and headed for insolvency. The company, which appointed a new chairman yesterday, has made no secret of the fact that it needs to find a 'strategic partner' if it is to live, but claims the search goes on. Ionica's big …
John Lettice, 25 Sep 1998
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Micro Anvika shutters stores, axes staff in fight for life

Troubled Tottenham Court Road retailer Micro Anvika's short-term future is looking more secure after suppliers gave its proposed rescue package the thumbs up. The move came at a cost, however: the firm has shuttered more than half its stores and laid off more than 60 per cent of staff in a bid to convince creditors, owed £2.7m …
Paul Kunert, 01 May 2012