Updated 13:15, 09/05/2017 to include VIP MD Rich Marsden’s comment.
Following on from the earlier news that Beta Distribution had pulled out of a deal to acquire Entatech, reports have now emerged that the Telford-based distributor has gone out of business altogether.
Entatech had been widely advertised to potential buyers over the past few weeks. Following on from the failed acquisition, the company was apparently put into administration at 4pm yesterday with most staff relieved of their duties.
The deal looked like it was sure to go ahead, but Beta was scared off after the due dilligence process where, according to people familiar with the matter, it discovered that Entatech’s stock was worth less than it had previously thought.
In a brief comment made to CRN, Entatech managing director Dave Stevinson only said: "I’m so sorry; I tried so hard to make this work." The site also reports that a skeleton crew has been kept on board to "help preserve the distributor’s enterprise value and maximise value for creditors".
According to members of the PC Retail Network, (PCRN), fellow distributor VIP has been calling around its customers this morning to tell them how the Entatech situation would effect them. VIP managing director Rich Marsden contacted PCR to clarify the situation, saying that the company will do the following:
1) Credit Limit, VIP has reached out to customers to advise we will increase credit facilities where needed to support customers in this period, so far we have underwritten around £500,000 of additional credit to VIP customers to ensure they have the facilities to transact business at their normal levels.
2) RMA – VIP will honour RMA’s that are in warranty for brands VIP represents, this takes away the concern of any customer of what to do with RMA.
Speaking on the news, Phil Griffiths of Chips Computers and member of PCRN said: "It’s a shame such a large company like this has gone bust. I feel for all the staff who work there, but also for the customers who may have issues with orders and warranty returns, this will affect more than just Entatech."
PCR has reached out to PCRN and Entatech. We will update this story with any further developments.