Deloitte seeks suitors for KMS assets - PC Retail

Deloitte seeks suitors for KMS assets

Administrators dealing with enquiries for distributor following its collapse
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KMS Components' administrators at Deloitte say they have received enquiries for the business and assets, and are in discussions with “several interested parties”.

The supplier – which was based in Penarth, South Wales and sourced and distributed electronic products to wholesale distributors and retailers – went into administration earlier this month. KMS?sold both own-brand and CNM branded tablets. 

Deloitte said in a statement sent to PCR: “Richard Hawes and Matt Smith of Deloitte were appointed Joint Administrators of KMS Components Limited on January 8th 2014. 

“At the date of appointment, there were 55 employees in the business. On January 8th, 34 redundancies were made, while 21 employees have been retained for a short period of time. 

“The company had a turnover of c.£45m.

“At the time of appointment of Administrators, a decision was made to cease all stock sales, whilst continuing to maintain the repair centre and customer support operation intact. The repair centre continues to handle customer support and returns. The Administrators have received enquiries for the business and assets and are in discussions with several interested parties."

PCR understands there were issues surrounding Google licenses, resulting in Argos discontinuing to sell KMS-manufactured tablets. 

Argos added:?“We do not comment on market speculation.

“We are aware that KMS Components supply a number of UK consumer electronics retailers and have supplied Argos in the past.”

Additionally, other suppliers are supporting retailers stuck with stock bought from KMS.

VIP Computers is now accepting returns for any Asus product bought through KMS, while Smithie UK has been granted permission from Samsung to process returns of SSD drives and optical drives.

VIP director Rich Marsden told PCR: “I think it’s important that we don’t leave the problem with the resellers, given we’re the number one distributor in the UK for Asus. It’s a fairly easy thing for us to do – there’s a small cost involved for VIP but it creates goodwill in the channel. It’s important we do as much as possible to put more confidence back into the market.”

Shane Hilden, MD of Smithie UK, commented: “The position many clients may find themselves in under these circumstances could be damaging to their business. We are pleased to provide a facility for former KMS customers to return their SSDs or optical drives.”

Gavin Holder at indie GHI Computers said:?“Whilst I am saddened that KMS has become a victim of the economy, I feel more for the independents who will struggle to deal with the certain losses imposed on them by the brands owned by KMS.”

PCR attempted to contact Google and former KMS staff but received no response.

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