$2 billion Australian stockbroker BBY is falling apart

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More than 100 staff at BBY are losing their jobs as a deal for a sale of at least part of the failed stockbroker business looks more likely.

The administrators and receivers have agreed that George Wang’s AIMS Financial keep doing due diligence on the business.

Sources said the receivers, Stephen Parbery and Brett Lord of PPB advisory, are finding liabilities far greater than the $2 million to $3 million which BBY had been seeking as a capital injection just last week.

It’s not known exactly how many are being made redundant but it is believed to be about 75% of the 170 total staff.

BBY executive chairman Glenn Rosewall on Monday called in administrators, Stephen Vaughan and Ian Hall of KPMG.

The staff were informed by email that the company had been unable to secure investors to inject additional capital into the business.

Late today staff were briefed on the the continuing interest by AIMS Financial.

Some of those staff are still owed large commissions from their work in corporate finance.

More than 30 shadow brokers, including Quay Equities and Oz Financial, which used BBY’s infrastructure, are reported to have quickly found new partners.

The ASX late today extended a deadline to transfer option positions from BBY to 9am Thursday from 5pm today. Tyhe said said it extended the timeframe because of the “large number of qualifying client positions sought to be transferred”.

Cracks were showing in BBY’s business in January when the ASX criticised BBY’s risk management and fined the broker $180,000 because it didn’t have enough funds to cover a $192 million transaction in 2014.

BBY was started in 1987 and has more than $2 billion in assets under administration. It claimed to have turnover of $2.4 billion in ASX equities per month.

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