Bankrupt reseller grew too much, too fast

The administrators of failed Perth-based service provider XciteLogic are hopeful to have a buyer for the company’s name and assets and goodwill by the end of this week.

XciteLogic, which went to the wall owing around $3.83 million to unsecured creditors, including Apple, HP and others, along with the Australian Tax Office, failed because of a lack of capital. The company also over-reached in an education-based software development, said company administrator Dino Travaglini, of Grant Thornton, in an interview with CRN.

Rumours have abounded about the behaviour of the company and its principals, in particular their relationship with Apple Australia. “I would say their relationship with Apple is no better or worse than that between any creditor or debtor,” said Travaglini.

“With hindsight, the capital of the company was insufficient,” he said.  The company did expand fast, it had operations in NSW, Victoria, SA and NT. It also developed a new product, which was a move into the education sector.”

The failure of the company has seen around 55 staff, out of a total of 100 heads, losing their jobs. It’s unclear if the company is sold whether any of the remaining staff will retain their positions.

On its website, XciteLogic boasts of its extensive industry portfolio, including an education, service and training provider accreditation with Apple Australia. The company also said it had relationships with Microsoft, Cisco, HP, VMware and others.

It operated across various industry sectors, including health, education and the corporate sector.

In 2012 the company was named as a winner of a Rising Star Award, sponsored by WA Business News, PwC and Bankwest. It was the only tech company to receive an award.

According to the website, the company had seen revenue growth of 600 percent since 2012 - almost double the run rate of 2012 CRN Fast50 winners LeetGeek - and an increase in staff numbers from 22 to 105 in the same period.

Travaglini said a meeting of creditors is slated for June 13, by which time the administrators hope to have a sale sorted out.