Creditors of embattled Web reseller E-store are likely to vote for the company to be placed into liquidation at a creditor's meeting on Wednesday, according to administrator Ian Purchas from Star-Dean Wilcocks.
The company - which temporarily closed its virtual doors last week - hasn"t been able to comply with the terms of a deed of company arrangement which were established when E-store went into administration in October 2001, said Purchas.
E-store owed around $2.5 million to creditors including distributor Tech Pacific. Pruchas said that the company recently hadn't made deed fund payments for the months of March and April.
He suggested to E-store boss Gerard Farley that he should consider not trading due to the likelihood that the company would become insolvent.
As a result, the website at www.estore.com.au is not operating and the company's main phone number has been disconnected.
A creditor's meeting on March 12 was originally adjourned due to the fact that the company had attracted a potential buyer, Perth-based e-tailer BuyQuick, which also took over fulfillment and logistics for the company.
"We adjourned that meeting for further consideration," Purchas said.
BuyQuick has since withdrawn its interest in buying the company, according to Andres Adamides, co-CEO of BuyQuick.
Adamides said the e-tailer withdrew its interest in estore last week after conducting due diligence on the company. 'We are no longer interested," he said.
Star Dean Wilcocks' Purchas said he wasn't aware of any other offers on the table for E-store. If the company is liquidated, the administrator, if it's appointed as liquidated will market the business for sale, Purchas said. "There will be a number of interested parties," he said. E-Store was founded by current PC Advantage boss Steve Spilly, who quit as MD following a legal fight before the Supreme Court of Australia over control of the e-tailer, which was settled out of court.