No buyer for NCSS, business to wind down

National PC repairer NCSS will be wound down after receivers failed to find a buyer for the business.

The company, with 80 employees and approximately 90 sub-agent repairers, only has a few weeks left of trading, according to a statement sent to CRN on behalf of receivers PPB Advisory.

“Unfortunately, the receivers were unable to secure a sale of the NCSS business as a result of the sales campaign,” the statement reads.

“With the support of the major customers, the receivers will continue to trade for a period of two to four weeks to help support their transition to alternative services.”

Administrators have previously reported that a return to creditors was entirely dependent on the outcome of efforts by receivers to sell the company – a condition that administrator Michael Smith confirmed to CRN on Tuesday was still the case.

Receivers have previously reported they had dealt with more than 30 interested parties in the hope of selling the business, which handles computer repairs for HP as well as infrastructure rollouts.

The collapse leaves money owed to dozens of NCSS sub-agents as well as claims by approximately 80 employees. CRN has seen a letter sent by receivers and managers PPB Advisory to one NCSS sub-agent which asks the agent to continue to respond to service calls during a managed wind down of the business.

Sub-agent Paul Chiari of FNQ Computers told CRN today he had not received any notification about who would be taking over the supply of HP sub-agent work. However, he said he had received an email from NCSS stating that he had been recommended to HP as an agent worth continuing a relationship with.

Another sub-agent said they were not surprised a buyer hadn’t been found. “I guess the nature of what they do. The fact AWA [another repairer which was sold earlier this year] couldn’t make a go of it. I’m not sure their margins were that great. The cost of running the organisation I can only imagine was huge. The fact that it wasn’t attractive to anyone doesn’t comes as a surprise,” the sub-agent said.

Last week it was revealed in an administrator’s report that NCSS made a loss of approximately $3 million in its 2012 and 2013 financial years. Among the reasons for the company’s failure, the report cited profit margins from repair work that had eroded, as well as the loss of several key contracts and a financial dispute, in addition to other factors.

NCSS went into voluntary administration on 27 August and liquidation on 1 October.