Staff resistance killed rival MemPlus bid

Bidder lost out on purchase of distributor for second time after employees refused to work for different management

Bidder lost out on purchase of distributor for second time after employees refused to work for different management

The receiver handling the administration of Memory Plus - trading as MemPlus Ltd - has been accused of rejecting a higher offer because the distributor's staff would not work for the bidder.

One industry source told MicroScope a buyer attempted to get accounts from the administrator, Tenon Recovery, after being informed a quick sale was proceeding with the existing management of Swindon-based Memory Plus.

The source claimed the third party buyer had tabled a higher offer for the distributor - believed to be in the region of £150,000 - than the management of Memory Plus, with the intent of completing by 14 January.

But the offer was not accepted "on the basis that staff [at Memory Plus] said they would only work for the present directors".

The bidder had hoped to be able to present its offer to the staff, but was never given the opportunity.

Simon Thomas, director at the London-based administrator, confirmed it had received another offer for Memory Plus, but refused to say whether it was any higher than the winning bid.

He insisted none of the company's employees wanted to work for the other bidder, arguing that without them, there was no business to sell.

"I have something on file saying that none of [the employees] wanted to work for that company. They didn't want to have anything to do with it," he said.

"As the appointed receiver, we had a duty to get the best possible price for the business and that is what we did," Thomas stressed.

The management buyout of the assets led to the formation of Amplio Technology Group.

Memory Plus was put into administration on 9 January by Euro Sales Finance, which had underwritten the previous MBO in March 2001 when the company was bought from then-parent Torridon.

This is the second time the third party bidder is believed to have lost out, having bid for Memory Plus at the time of the buyout from Torridon.

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