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Beta Distribution has withdrawn from talks to buy rival Entatech after some last minute due diligence.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