All 170 employees of troubled stockbroking firm BBY have been made redundant, and the firm may be sold to the AIMS Financial Group.
BBY, which controls more than $2 billion in funds, was placed in administration on May 18.
BBY appointed KPMG to run the firm after it failed to secure new investors to inject new capital into its business.
Administrators Stephen Vaughan and Ian Hall said after a meeting of about 110 creditors in Sydney on Wednesday, plus more linked via a webcast, that BBY was now in receivership and administration.
All staff at BBY had been made redundant, and the receivers and administrators were currently in talks with the AIMS Financial Group about a potential sale of BBY.
The administrators said BBY had run into trouble after suffering losses over the last 18 months, experiencing pressure on margins, higher operating costs and overheads, and inadequacies surrounding its accounting and financial systems.
Further investigation was being undertaken to gather more detailed information.
The administrators were unable to say yet how much money was owed to creditors by BBY because some trades were still being closed out.
They said the mood of the creditors' meeting was not hostile, but a lot of people were frustrated, wanting to know if money in their client accounts was still there and what process they have to go through to retrieve it.
Tennis great Ken Rosewall is a director of BBY, and his son Glenn Rosewall is the company's executive chairman.
The firm was established in 1987 and services institutional investors, private clients and high growth companies from Australia and around the world.
BBY's head office is in Sydney and the firm has other operations in Melbourne, Brisbane, the Gold Coast, Adelaide, Perth, London, New York, Wellington and Auckland.
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