Selway Moore went down owing channel millions


Selway Moore went down owing channel millions

Microscope contributor
The collapse of Reading-based HP reseller Selway Moore has left a string of creditors with debts of £2.7m in its wake.

Financial statements gathered from Selway Moore reveal that unsecured creditor claims amount to £2.7m, of which £1.4m is owed to trade creditors, including just over £1m to Arrow ECS and £218,000 to Ingram Micro.

After running into recession-induced cash flow difficulties, the reseller called in administrators BDO LLP last month and laid off the remaining five staff as the business ceased trading.  

A creditors meeting has been called for 11 May and BDO has compiled a report estimating total assets for preferential creditors are worth just over £94,000.

According to the report, BDO received no offers for the entire business and initial interest in the goodwill of the firm did not develop, however it has received a bid for the recycling arm and negotiations are ongoing.

BDO noted "there will be sufficient funds available to enable a subsequently appointed liquidator to pay a dividend to unsecured creditors, although the quantum and timing of any such dividend are uncertain."

Credit insurers removed cover on the firm last year and it is understood that anyone that had continued to trade with the firm would have done so at their own risk.

Sources said Selway Moore had been struggling for years and were surprised at the level of debts it notched up in the channel.

Others claimed the return for unsecured trade creditors would be minimal, "it will be pence in the pound," predicted one.

Ingram Micro and Arrow ECS were unavailable to comment at the time of going to press.

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