Liquidators for failed reseller Warehouse1 have indicated that the company may have traded while insolvent as early as seven months before its collapse.
Warehouse1 sank into liquidation in February after four years of operating an online IT retail store and brick-and-mortar location in Melbourne, appointing SV Partners to handle the liquidation.
While SV Partners said its investigation was still ongoing, there were a number of factors suggesting insolvent trading, including balance sheets that recorded net asset deficiencies as early as July 2017, and negative working capital and liquidity ratios.
Warehouse1 started incurring trading losses from the start of 2017, if not earlier. According to the liquidato…
Read the full article at: https://www.crn.com.au/news/failed-reseller-warehouse1-might-have-traded-while-insolvent-491157