The assets of Kingman Sign & Graphics, which created signage for clients including Optus Stadium and Crown Towers, are to be sold by administrators for less than $200,000.

The creditor report, filed this week, comes just over three years after the company's founder Vernon Kingman sold the business for an undisclosed amount in December 2020, in a deal valued at $192,500. revealed that he had done so.

KordaMensa's John Bumbak and Richard Tucker were appointed voluntary administrators of the company and its holding company Kingman Group Holdings in January.

They recommended that creditors vote in favor of the deal, after which both companies would go into liquidation.

The administrator's report said the move would likely result in the company's main unsecured creditors, Kingman and his wife Diane, losing nearly $750,000.

This marks a downfall for the company Mr Kingman founded in his family's garage in the late 1980s, producing signage for major projects such as Perth Stadium.

Kingman reportedly employed more than 60 people when administrators were called in on Jan. 29.

The business was acquired in late 2020 by Norman Ash and Todd Glover, who was appointed managing director at the time of the acquisition.

Mr Ash left the business in October 2023, before administrators were called in in January.

The failure of this business was due to higher-than-expected implementation costs for new products, including recent expansions into cladding, digital signage, and EV chargers, and slower-than-expected revenue generation from new products. It was thought that the cause was management.

The slump in the core signage business was also highlighted due to market conditions and the loss of key staff.

Administrators also cited Kingman's large operating cost base that has increased as the service expanded, low conversion rates for pipeline jobs, and a lack of access to timely and accurate reporting information, according to the investigation. He said it was found to be a contributing factor to the disaster.

It also highlighted management's failure to reduce cash outflows while cash inflows declined.

Kingman has criticized management's handling of the story on social media.

In a recent conversation, business newsMr. Kingman disputed management's claims about signage's underperformance and questioned the logic of expanding into new business areas.

Mr Kingman said there was concern for employees who were laid off as a result of the company's bankruptcy.

Creditors are scheduled to vote on liquidating the companies on March 5.