That's some loss in inventory and receivables.....!
512 posts • joined 7 Oct 2011
That's some loss in inventory and receivables.....!
$700m for a business with turnover of $17.6m and successive losses? Suggest anyone looking to sell fires off an approach to Cisco....easy money.
I now expect a greater frequency of Indian or African language cold callers from 'Microsoft' telling me my system has been hacked or infiltrated..
What started life as a successful 'etailer' got bloated with bits such as sub,sub distribution, a penchant for retail stores and a foray in solution sales, areas which they had no real expertise and therefore no real sustainable return.
Read into this folks...there is a message there perhaps in terms of where one will head and what its future will be...
So, not one already on the payroll then..
I'd like a front row seat for this pantomime...with a bit of Country and Western soothing the brow
I very much suspect a deal will be done with James as this would be the right thing to do. Finding an excuse to off-load unsecured loan notes in this way is deplorable and indeed questionable, even if legal.
No doubt in my mind that Stone may find suppliers more wary of risk given recent changes and publicity.
Small buy but it makes sense given historical links.
Astute, accurate and precise analysis. History as I knew it too. Fact is that James was Stone, he was both the engine and the driver and his departure left a void that was never adequately filled or managed. Having said that, when one goes through one MBO via a VC (one that knew zulch about the business), goes through a tricky patch and requires rescue involving another VC, the debt upstairs begins to accumulate. Debt, Loan Notes, accrued interest and not enough profit is always a recipe for disaster. This latest escapade is likely to be merely the beginning of the end.
Any indication on the level of 'services' sales figures?
Odd, how currency movement favour some and not others...
Some miserable gits commenting here and there...nice story so why bitch? And Alex is such a nice bloke too...
Inevitable result and simply the only sensible route Kelway could follow. I suspect however, that given its total takeover, the name of Kelway may well disappear in due course.
Those rocks can soon appear very jagged indeed...they will have to strip out quite a lot of cost.
Fascinating how many lose their way in 'motherships' - smothered to death maybe
Probably already are you mean....holding all his assets too...
A very. very confused business...
That lovely word....'execute'... corporate speak for cutting off heads..
BYOB... bring your own bog
Plenty of scope here....
Over charging?....never...who'd do such a thing?................................EVERYONE
Vendor selection of partners and direction pretty predictable. This will not do margins any favours so any gains are likely to be short-lived...for all.
This is probably the only real and sensible option at this time even though only a few years ago, the thought of an IPO was perhaps anathema. An IPO will give it scope on the one hand but will also change the 'character' and almost 'family' aspect of its corporate history and growth. Positives but with some negatives therefore.
A bit odd but not surprising. looks like buying a Reseller to sell it's Reseller Services to other Resellers...or is it?
How much is the debt upstairs now...and is it being serviced?
A reminder for those whose memory may be poor...'Solution' selling by either Vendors or Distributors is designed to achieve one aim, the sale of hardware and and software - ergo what they have always sold and will always sell, subject to making any money out of it.
Surprised it took this long for someone to take a good look at Computers Unlimited. Inevitable and has in truth been on the cards for at least the last 5 years. Expect more consolidation. My list of 68 UK Distributors in 2010 is now down to 33...
This is a ridiculous way to push your kit and suicidal for anyone that attempts it, let alone their clients. This smacks of desperation when perhaps it might not be there.
Never really been pure resellers. They've had a mix of sub distribution, wholesale and reselling for years. Both are significant buyers from major Distributors and yet compete against them too.
Used to rate this business...many, many, many years ago...kind of makes one wonder how it was screwed up over the years..
Great move and long overdue. it needs someone of this size however to be able to support it. Third party funders and even vendor driven ones have not really ever got sufficiently involved in funding end user deals properly.
If they paid someone for this, they've been robbed...
An even more complex bit of 'corporate speak'.... there must be a Reg annual prize for this surely.
That, should speak volumes.
This is how big acquirers lose much of the acquired business. Such a common event but ultimately, most such acquisitions have three aims. Take out a competitor, grab the good high margin bits while there and dump costs when there's no scope for further plunder.
Anyone got a breakdown of these huge costs?
Made the mistake of buying one of their printers....NEVER again..
Is EMC a Bank?
Taking a 25% stake in the business is a bit of a saver....
Jon did a great job there....the business is however ripe for the plucking...
Question...why just US owned internet companies...what about all those large, medium and even small corporates, who like internet companies. mitigate their tax through legitimate practices. HP, for example, pays zero corporation tax in the UK.............
Cue the violin player...
The restitution hearing will determine this. Question one must ask is how unique is this? in other words, is this a common theme in supply chain orchestration?
So, suppliers had credit insurance so it's OK to fail.... pfft....odds are they didn't given recent filings. Point is, if distributors are struggling to make a profit, brokers further down the chain feel it even more. This one has been heading for a fall for three years.
Expect the inevitable....crash.
The issue here is quite simple. If, as a critical IT supplier to a business that suddenly goes down the pan into Administration, I am likely to have within my terms and conditions of supply a clause which will state that in the event of Insolvency or implied insolvency, I have a right to immediately cease supply.
If an Administrator wishes me to continue delivery in order that he (the Administrator), can maximise any recovery to fill his pockets and pay secured creditors, then he will have to put his hand into his own pocket and guarantee me payment for any ongoing supply. I may still be peeved that debt owed prior to Administration may not be paid and feel angry enough to stick two fingers up at any guaranteed future payment unless I can increase the charge to account for this.
I'm all for business recovery and continuity but there comes a point where the playing field has to be level and fair.
That's it then...bought by EMC soon...