SYDNEY - Australian mid-tier stock broking firm BBY has been placed under voluntary administration, newly appointed administrator KPMG said on Monday.
Sydney-based BBY was in final negotiations to secure funding worth A$2.5 million to A$3 million (S$2.6 million to S$3.1 million) from AIMS Financial Group and another backer but the deal fell through, the Australian Financial Review said.
"I regret to inform staff that despite exhaustive efforts by the BBY board to secure investors to inject additional capital into BBY we have been unsuccessful," BBY Executive Chairman Glenn Rosewall said in a note to staff cited by the newspaper.
KMPG said in statement it was taking urgent steps to assess BBY's options and safeguard the positions of clients.
Established in 1987, BBY employs about 200 staff and has over A$2 billion under administration, according to its website. It has a monthly turnover of A$2.4 billion in ASX equities.
Earlier this month, BBY exited its options trading business citing gyrations in the market and the pressure on advisors to ensure clients' exposures are properly collateralised. In February, BBY's board discontinued BBY Online Trader as part of a review of its risk returns and margins.
A voluntary administrator is usually appointed when a company's directors believe the company is insolvent or is likely to become insolvent, and is responsible for resolving the company's future.