Project delays sink Data People into $1.4m liquidation

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Project delays sink Data People into $1.4m liquidation

Sydney-based cloud services provider Data People has entered voluntary liquidation after racking up a $1.4 million debt pile.

A liquidator for the four-year-old business was appointed earlier this month.

Four distributors are among its list of 34 unsecured creditors. Avnet is facing the biggest hit among the disties, with a $100,000 debt, while the biggest industry creditor overall is Vocus Communications, exposed to the tune of $105,000.

The liquidator listed Bluechip Infotech as being $51,000 out of pocket, Distribution Central owed $37,000 and Ingram Micro down $10,000.

A further $285,000 is owed to the Australian Taxation Office, while 13 Data People staff and their superannuation funds are down $312,000.

Data People chief executive Bill Bilalis told CRN that delays on several of the company's major projects had forced it under. “We had very large delays on some sizeable deals that were supposed to be realised in the last few months, and we realistically couldn’t have met those demands."

Data People's customers have been advised to coordinate their data centre operations directly with the relevant vendor until a replacement service provider can be found.

Nick Verykios, managing director of Distribution Central, said Data People had "done all the right things" when it came to the liquidation.

“They... reached out to their suppliers and they reached out to a third party for liquidation," he said.

"Australian customers are just getting way too much IT for cheap, and the market is just generally oversupplied. Sometimes the margins just don’t equate to investments. “

Founded in 2011, Sydney-based Data People provided cloud services, data centre solutions and architecture strategy, with operations in major data centres including iSeek, Global Switch, Equinix and Vocus.

Liquidator Armstrong Wily has been approached for comment.

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