Rock Computers are the multiple award winning manufacturer of specialist high power gaming laptop computers based in Warwick, England. Unfortunately one of their employees was a thief and stole Â£200,000 off the company which he spent on online gambling and prestige car rental. This has forced Rock into administration and it can now be bought as a going concern:
Dominic Wong and David Langton of Deloitte & Touche LLP were appointed as Joint Administrators of Rock Group Plc (â€œRockâ€) on 8th May 2008. The Administrators are working closely with the management of Rock to attempt to secure a sale of the business as a going concern.
Reasons for the failure of the business
The failure of Rock is partly attributed to the cash flow difficulties faced as a result of stock misappropriation by a former employee. This led to suppliers reducing credit limits, further adversely impacting upon cash flows. As a result of the recent difficulties faced by Rock in obtaining regular supplies of key components, Rock had effectively ceased to trade prior to the Administrators appointment.
Selling the business
The Administrators have maintained a skeleton staff whilst attempts are made to achieve an early sale of the business and assets as a going concern. The Administrators are currently liaising with a number of potentially interested parties in this regard.
It should be noted that Rock is unable to maintain normal trading activities during this interim period, including fulfilling sales orders and undertaking service and warranty work.
Equipment should not be forwarded for repair or warranty work at this time pending clarification of whether a going concern sale of the business has been achieved.
If a going concern sale is achieved
If a sale of the business and assets as a going concern is achieved, a purchaser of the business is likely to wish to fulfil outstanding sales orders, recommence service activities and complete warranty work.
If a going concern sale is not achievable
Should it not be possible to achieve a going concern sale of the business and assets the business will close. Rock will be unable to fulfil outstanding orders and current and future service and warranty work. In this eventuality :
â€¢ Should you have recently ordered and paid for equipment that has not been supplied, you will rank as an unsecured creditor. If your payment was made by credit card, you may be able to obtain a refund from your credit card issuer.
â€¢ In relation to warranty work, we understand that Rock maintained an insurance policy to cover the extended period of the warranty (years two and three following purchase). This policy did not cover warranty work arising in the first year following sale.
â€¢ In relation to the insurance backed period of the warranty (years two and three) we are currently liaising with the insurance company for confirmation of how they wish to handle claims arising.
â€¢ In relation to claims arising in the first year of the warranty, any claim / costs incurred represents an unsecured claim. If the equipment was purchased by credit card, it may be possible to obtain reimbursement from your credit card issuer.
Any amounts owed to creditors prior to the date of Administration will rank as an unsecured claim. The Administrators will shortly be sending a letter to all known creditors which will explain the Administration process and will detail the process for creditors to submit their claims.
The Administrators will provide further updates in due course.
The affairs, business and property of Rock are currently managed by the Joint Administrators. The Joint Administrators act as agent of the company and without personal liability.