Entatech bought out of administrationLast updated on: May 22, 2017, Author: Editorial Team
Recently, the Telford based districturo was placed into administration, with the immediate loss of 50 jobs. But C&W Distributors has come to the rescue, saving 29 jobs.
KPMG insolvency specialists Chris Pole and Mark Orton were called in to Entatech UK Ltd on 8 May 2017.
The business has been sold to C&W Distributors, which trades as GNR Technology. The new company is led by former members of Entatech’s management team.
Pole, a restructuring partner at KPMG, said: “We are pleased to have completed a sale of the Entatech business, safeguarding the employees at the Telford site.”
The business distributes PC hardware, software, components and networking for the trade industry, counting retailers and resellers.
Entatech has experienced a rocky few years, leading to a takeover of the business and a restructure in 2015 – although that move proved insufficient to keep it out of administration.
The company and the joint administrators worked with Devinder Singh and Russ Hill from law firm Squire Patton Boggs on the deal.
The company’s turnover had fallen from £117 million to £103 million last year, as it attempted to stabilise in the wake of a legal case involving Changtel, a separate business from which it bought a number of assets in 2013.
Earlier this year Jason Tsai, the former Changtel managing director, was barred from being a company director for 13 years after a long-running investigation by HM Revenue & Customs.
He had also been a director of Entatech, but has had no involvement in that company in the run-up to the administration.
Reports had suggested that a takeover deal for Entatech had been in the offing before last week’s collapse into administration, but that these had ultimately ended without success.