Saxo Bank's Australian white label Sonray Capital collapses

There's a report today in Australian press that Sonray Capital, one of Australia's biggest IBs, has collapsed leaving more than 3,000 investors worrying for their money. In fact, Sonray were Saxo Bank's White Label and were in talks with Saxo about possible buyout a few days ago. When the talks collapsed from whatever reason, so did Sonray. Reading the report I see that Sonray employed over 70 people staff and had only about 3,000 clients - that alone explains why the company collapsed.

From the report:

The Sonray business has operated since 2003 and employs about 70 people in offices in Melbourne and the Gold Coast. Sources said the group had been talking to Saxo Bank about a buyout. Talks collapsed and administrators were appointed late last night.

The company is understood to have had big expenses topping $10.5 million in 2009 on revenue of just $8 million, leaving a loss of more than $2 million. It also occupied pricey offices in both centres.

Sonray is a big user of other broker platforms and specialised in Equities as well as over-the-counter products including contracts for difference (CFDs), options, futures and Exchange traded funds. It was one of the first companies in Australia to provide advice on CFDs, investment tools that are banned in the United States.