Is non-compete valid after layoff?

Over 3 months ago my former employer laid me and the rest of last employees off because it was going out of business due to lack of funds and large debt. A former co-worker and I then began our own company. Our former owner even sent out a letter stating that the company was going out of business. The owner even called clients to tell them about my partner's and I new company and that it could provide them continued service. Several of the clients went with us. Now three months later he is trying to sell his client list (including the clients that signed with us) and threatening us with the non-compete we signed when we first started working for him. Is the non-compete void since the company has not had employees for over three months and has not provided clients with any service since laying everbody off? Even the owner has a new job with a different company. We feel he is just trying to get money for the large amount of debt he has from his failed business.