Infotronics in liquidation

Distributor Infotronics has been voluntarily placed into liquidation by S Central CEO Peter Mavridis.

Mavridis, who sold the assets of parent company S Central to Brennan IT for an undisclosed sum earlier this month, said Brennan IT had decided not to proceed with S Central's distribution business as part of the transaction.

Mavridis said Infotronics had ceased taking orders on the Monday, November 2, the day the acquisition was announced.

"At that stage, Brennan did a review and decided not to acquire that part of the business," he said.

Mavridis said he decided to "bypass administration" for S Central's distribution arm as he didn't think there was "any value" in the company.

Simon Nelson of Romanis Cant has been appointed as liquidator.

Mavridis said Infotronics owes no more than $500,000 to creditors, and is owed a greater amount by debtors.

"It's only a small company - just a distributor, with never more than four staff," Mavridis said. "It was trying to compete with iTX and Ingram Micro. Distribution is a scale game, but Infotronics never did more than a couple of million in revenue. You are always going to struggle in that game if you're only doing $2 million in revenue."

Mavridis expected stock to be sold to another distributor, customer or back to vendors.

The Brennan transition

Mavridis said he is "still doing the transition" of S Central assets to Brennan IT and has not commenced employment with the integrator as yet.

Brennan IT told iTnews that some 43 S Central staff had taken contracts with the company.

Mavridis re-iterated that "nearly all were made offers" as part of the asset sale.

"Some had other offers in the works or wanted a career change," he said. "The good thing for me is that all staff have jobs."