Beta Distribution's Dutch arm, has folded as a "direct cause" of its parent company's financial woes.
According to a Dutch-language report posted on bankruptcy website Faillissementsdossier, the subsidiary declared bankruptcy on 21 December 2018, with a debt pile of nearly €2m.
The UK distributor went under in October last year, owing around £36m (€39.97m) to creditors. It had previously reported £186m in turnover for its year ending 31 March 2017.
According to the report on Faillissementsdossier, JMRC Rosbeek was appointed as administrator for Beta Distribution BV's bankruptcy and conducted his report from mid-December to mid-January of this year.
The Dutch arm saw turnover of €40m in its financial 2017-2018.
At the time of the administration, it had €730,000 of book stock, and trade receivables debt of nearly €2m.
A third party has since bought the Maastricht-based subsidiary for a prepaid purchase price, as well as the book stock.
Beta Distribution BV owed €719,174 to 25 unsecured creditors at the time of its bankruptcy, and the report states that none have so far appealed for a retention of title.
Deloitte was brought in to assess Beta's UK finances by Lloyds Bank, a secured creditor, when the distributor breached its bank overdraft.
In its administrator's report on 20 December 2018, it said that Beta Distribution BV continued to trade and was under the control of its director. Beta held a 90 per cent stake in its BV unit.
The parent company is expected to have £25m available to pay creditors, of which Lloyds alone is owed £28m.
Beta BV had eight employees at the time of bankruptcy, who were told of the news a day after bankruptcy was declared, according to the report.
Eddie Pacey, credit management expert, speculated in his blog that moving into the European market may have been the start of the distributor's problems.
"Things appear to go wrong in 2014 when Beta begins its foray into Europe," he wrote.
"While revenue there grew quickly from around £9m to £45m in 2017, funding and indeed managing such European growth can prove challenging, more so when one's core UK business begins to plateau or slide and receivables funding availability dries out."
Beta Distribution BV's website is no longer available, and the phone line is disconnected.
Deloitte told us that it is not involved in the insolvency of Beta Distribution BV.
We contacted former Beta executives for comment.
Some say performance, others say money but it may be systems and processes that carry the day
Azure Arc and Synapse are 'game changers', according to New Signature boss
Acquisitive UK distributor welcomes two more firms to the fold, on the same day its H1 sees a 43 per cent jump in operating profit
The investment marks an expansion in the region, a month after the vendor's EMEA boss said it was capitalising on rival NetApp's withdrawal of support