Millennium Business Systems went bust owing £2.1 million

29StoreIsSclosedThe administrator looking into Millennium Business Systems’ (MBS) woes has said the company went bust owing £2.1 million to 197 unsecured creditors.

The outfit went bust after a failed attempt to refinance left it with no choice but to call in administrators.

A report, available to view on Companies House, has revealed that MBS had been close to getting the cash but a winding-up petition was filed by a supplier after a £237,508 invoice went unpaid.

As a result, the firm ceased trading on 27 November, with 30 members of staff let go immediately and four kept on helping with the administration process.

Of the 197 unsecured creditors the largest are Exertis (£408,600), Tech Data (£350,000), Midwich (£310,600) and Westcoast (£171,600). HM Revenue and Customs is also owed £114,200.

There are shedloads of resellers and distributors are owed varying amounts under £50,000.

The administrator said that there will be money left over to pay unsecured creditors once secured creditors have been paid, but stopped short of giving any guidance on how much this is likely to be.

The firm’s employees are owed £41,000 and the administrator said they are likely to be paid in full.

In the full year ending 31 December 2016 MBS reported revenue of just over £8 million and in the following year to 31 December 2017 was expecting to see year-on-year growth of 35 per cent, according to the report.

By August 2017 that this was not going to be achieved and MBS began to struggle as a result of investing in staff ahead of the anticipated growth.