Tag: Entatech

Doomed Entatech was nearly sold

indexEntatech was close to being acquired before it went bust, with a prospective sale falling through on the day it was set to complete, according to an administrator’s report.

The adminstrators, KMPG, said that the preferred bidder pulled out of the deal on the day it was set to complete (5 May).

Entatech went into administration in May, after failing to secure a buyer following a sale process. However it was a near run thing.

The Entatech received interest from 130 investors and 30 trade parties, 17 partners expressed and interest and 10 signing non-disclosure agreements.

By the 21 April offer deadline there were two bids, including one from Entatech’s management, before a third bid was made on 26 April – which went on to be the preferred bid.

KMPG said that an acceptable offer was negotiated, contracts were progressed to final draft and solicitors were in funds.

“Completion was set for Friday 5 May 2017, but unfortunately the bidder confirmed on this date that it could not complete.”

Entatech went into administration and its assets were acquired by managing director Dave Stevinson’s GNR Technology.

According to the administrator’s report preferential creditors will be paid in full, while unsecured creditors are expected to receive a dividend of an unspecified amount.

Entatech creditors will get two-thirds of what they are owed

creditcrunchcoinsmoneyvicewatersmay2014-580x358Unsecured creditors of distributor Entatech are set to receive around two-thirds of their money back.

According to documents published by Companies House, the administrators show that Entatech’s unsecured creditors are owed just over £9.7 million by the Telford-based outfit, and there is £6.3 million to pay them off.

Of the £9.7 million, £7 million is owed to unsecured trade creditors. This figure includes Microsoft which is owed just over £1.2 million.

The taxman is owed £2.5 million and Gigabyte is owed around £822,000 while Fujitsu is owed £668,000.

For those who came in late, Entatech went out of business in May after struggling with legacy financial problems originating under the previous ownership. Its assets were purchased by managing director Dave Stevinson who formed new brand GNR Technology Limited. GNR stands for ‘Greatest Net Return’.

GNR cut the number of vendors it carries from over 70 to around 25 to have a narrower and specialist focus. It has secured deals with Gigabyte, Adata, Hannspree, iStorage and Intel.

Entatech MD creates a phoenix

 The MD of the failed Entatech Dave Stevinson has created a new brand which he claims will raise an extra £1 million for creditors of fallen distributor

Stevinson has borrowed £1 million and bought some Entatech assets from the administrator KPMG. Not only does that mean that creditors will get some cash, it will also save 29 jobs.

Entatech entered administration last Monday after it failed to sell itself in a ‘pre-pack’ deal to Beta. It had been seeking a trade deal for several months amid a deepening credit crunch.

Stevinson said he and his family have acquired a new firm, GNR Technology, which has bought some of Entatech’s assets, namely the stock and some fixtures and fittings, as well as goodwill that gives it access to customer contracts.

GNR stands for ‘greatest net return’, reflecting the distributor’s mission of maximising the return for its vendor creditors.

The new company will manage the channel inventory of our vendors, as opposed to seeing the stock purchased by an inventory auction house.

Stevinson said GNR would be funded by a blend of personal funding and new funding secured from Aldermore Bank.

He said the new company would be a narrow-line distributor, focusing on the UK market. We expect to hold onto the key vendors.

Beta Distribution pulls out of talks to buy rival Entatech

hqdefault (3)Beta Distribution has withdrawn from talks to buy rival Entatech after some last minute due diligence.

Beta  MD Steve Soper said information obtained during due diligence process killed off the transaction.

Beta confirmed that it had been in “detailed talks” with Entatech and its advisors about acquiring certain assets of the company.

However while the talks went on for a while, it appears some  information obtained during detailed due diligence meant Beta was unable to continue.

Industry rumours were claiming that Beta was closing in on inking a pre-pack deal to buy Entatech, which has been widely marketing itself in recent weeks because it needed a larger trade backer to deal with its credit problems.

It managed to get a reprieve last March when new management there agreed a deal with HMRC over its legacy VAT issues. But then  the outfit lost its key Fujitsu contract last summer and it was forced to put itself up for sale.

The search intensified at the end of April when RBS started to take control of the company.

Soper said that Beta would still deviate from its glorious five-year plan if the right opportunity came along.

Entatech fitted the bill, with experienced people, important supplier relationships and a well-established customer base but in the end, it wasn’t a starter.