Entatech managing director Dave Stevinson has spoken to PCR for the first time since news broke that the company had gone into administration.
Speaking to PCR, Stevinson recounted what lead to the events of last week, confirming that Beta Distribution’s withdrawn offer for the company was what led company directors to place the firm into administration:
"Although Entatech had over £2.5 million in shareholder funds the signs were that company could become cashflow insolvent by mid May. Thus the directors decided that Entatech should be offered for sale. Entatech was extensively marketed (under the codename Bachus) by two Corporate Finance companies to over 160 parties, resulting in over 20 expressions of interest. NDAs were signed with 20 confirmed parties who were all given access to the data room and extensive company information. After reviewing the information and agreeing terms one party went through to contract finalisation but ultimately pulled out at the very last minute prior to exchange of contracts. This left the directors with no option but to place the company in administration."
Stevinson took over the role of MD at Entatech in 2015 when the company was in the midst of a high profile VAT fraud case and suffering from huge losses the previous year. "That was the situation, but I did believe we could turn it around. In March 2015 the company was just about to fall over and we tried but ultimately it wasn’t good enough. So close, yet so far.
"I cannot explain what a traumatic week it’s been. I had to stand up in front of about 50 loyal staff who had just lost their jobs through no fault of their own and make a speech. I broke down in tears twice. It’s so sad."
In spite of this, Stevinson has resolved to not let this deter his love of the tech Channel and announced plans to launch a new, narrow line trade-only distributor called GNR Technology with a "laser focus" on independents.
"We will hard launch as soon as we can but soft launch with reduced functionality with immediate effect. The channel needs a passionate and experienced distributor – hopefully the readers of PCR will fully support us."
Read the full interview with Dave Stevinson in June’s issue of PCR, hitting shelves towards the end of May.