Dan Technology teeters on brink
Dan Technology, the UK system builder, is talking to insolvency practitioners BDO Stoy Hayward, brought in today at the behest of its bank.
But the company has not been placed in administration at time of writing (16.46pm), contrary to industry gossip. We called Dan's Leeds HQ this afternoon, but no-one picked up the phone.
Rumours concerning Dan's financial state, centering around its ability to meet this month's pay-roll, swept through the industry earlier this week. We understand that the company did make the payroll today.
Dan Technology has been operating in fiscal limbo land since the beginning of this year, when Euler Trade Indemnity, the major trade insurer, withdrew credit cover from the company.
This meant that suppliers dropped or scrapped credit limits, forcing Dan to pay cash upfront. This is effectively a death sentence in a low-margin, high risk industry which runs on credit.
Set up in 1988, Dan Technology has its HQ in London and a branch office in Leeds. The odds on the company getting a buyer seem fairly good to us - it has a good reputation, consistently winning Which? computer user polls, and it has a big installed base. ®