The directors of BMS Technology made an “agonising” decision to go into administration earlier this month after determining there was “no future” for the business, according to a report from administrator Macks Advisory.
The Adelaide-based distributor had a total of 15 employees, which included directors John and Beverley Reid and two casual staff, who all had their employment terminated upon Macks' appointment on 10 October.
“Despite everyone’s best efforts there just hadn’t been enough sales to cover costs,” former BMS director John Reid said. “The economy was such that sales were getting harder and harder to find.”
Amid mounting losses, the owners made the decision to close in a bid to cover debts and give employees a better chance to look for jobs before the holiday season.
“The staff have been the backbone of the company so the first priority was to ensure they had the best possible options,” Reid added.
Macks brought four of the staff back on a casual business, together with one contractor, to assist with the administration.
It was determined that the distributor should cease trading immediately and assess its position, while looking maximise all assets and liabilities.
Stock and personal property securities register (PPSR) claims are also being reviewed by the administrators, verifying stock levels and arranging the return of each stock to its respective security holder.
The directors are expected to propose a deed of company arrangement (DOCA) with its creditors at the second creditors meeting.
The first creditors meeting has been set to 19 October, to be held at Macks Advisory’s offices.
BMS Technology opened in Adelaide in 1986 and had been in business for 31 years. Its portfolio includes Canon, Intel, Microsoft and Toshiba.
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