Brands exercise an asset-strip and criticises lack of respect for staff and creditors

Elonex’s Smith slams sale of Evesham

Elonex’s CEO Nick Smith has blasted the sale of Evesham Techology, claiming that current owner PCC was "asset-stripping" and had "no respect for the staff or the creditors."

Speaking to Hexus‘ Scott Bicheno, Smith responded to Tahir Moshan’s claim that PCC had been able to "minimise the adverse effects of an insolvency situation on consumers and employees alike."

"It was clearly just an asset-stripping exercise," he argued. "[It had] no respect for the staff or the creditors. They kept the support in so they could keep selling product," he added, responding to Moshan’s claims that PCC has been "conscious not to leave customers out on a limb without any support."

Speaking about Elonex’s original offer for the company, Smith said:

Now it’s just a profit-making exercise. "We made the best offer at the time. Our intention was to merge Elonex’s production with theirs to create economies of scale."

His comments were in response to former Evesham chairman, Richard Austin’s assertion that: "I feel that the best all round outcome was achieved."

"Our offer was in excess of a million pounds plus funding to continue and expand existing Evesham operations," added Smith. "If our offer had gone through we would be employing many more people in the local community than the current owners did even initially, let alone now."

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