2001: the first distie failures
The new year is barely four days old, and two distributors have already gone into administrative receivership.
IMC Distribution, which is best known for handling Umax's scanner line, went into receivership on Tuesday. Callers to its Ascot. Berks office are told that it is "now closed".
Users with sales and support enquiries are referred to Tekserve, whose staff admit they were "thrown into it a bit" by IMC's shutdown. Tekserve will not be handling IMC's laptop business nor will it be distributing Umax scanners.
Umax UK, formed after Umax Europe acquired the company name from IMC, and whose directors include a former head of IMC, is distributing scanners through Computer 2000.
According to credit and business analyst Dun & Bradstreet, IMC recorded losses of £948,000 on sales of £14.8 million for the year up to December 1999.
Brian Burke, manager of Dun & Bradstreet CMIC, said IMC reduced its workforce from 55 to 30 people last year but its business model still proved unprofitable. He explained that IMC operated a high volume business and when it cut costs to sustain its run rate margins shrank so low that it made a loss on sales.
Components and memory distributor VLSI International has also gone into admin receivership. The broker/ distie was well-established and had a staff of around 60 people and sales of £87 million. London-based Howard, Clarke & Whitehill have been appointed as receivers for VLSI International.
Programmer's Paradise shareholders have approved the sale of the reseller's European subsidiaries to PC-Ware Information Technologies AG of Germany, for E14.5m. The deal is epected to close on January 9.
PC-Ware is one of the three biggest Microsoft Select partners in Germany.
Action Computer has licensed its product database to Peregrine Systems Inc for £3m. The deal lasts three years and is part of a 'strategic partnership' in which Action will act as a master distributor for Peregrine products.
ASPs will rescue resellers from shrinking margins, Computer Trade Show organiser Imark claims.
It has organised a seminar run by Netstore channel development director Alison Heath called "Changing Margins: The ASP recurring revenue stream," Inside-IT reports. CTS runs on 21-22 February in Birmingham. ®