Selway Moore calls in the administrator

Selway Moore has become the first major reseller casualty of 2010 after cash flow issues left management with no option but to shut up shop. The Reading-based HP Gold partner has called in administrator BDO LLP and the remaining staff have been made redundant. Phil Reakes, managing director said it

Selway Moore has become the first major reseller casualty of 2010 after cash flow issues left management with no option but to shut up shop.

The Reading-based HP Gold partner has called in administrator BDO LLP and the remaining staff have been made redundant.

Phil Reakes, managing director said it had been impacted by fierce price competition in the channel, a slowdown in sales and overheads it could not afford.

"Selway Moore is no more," he told MicroScope, "all our problems come down to the last two and half years and the most severe economic crisis the industry has ever faced."

The firm, which was founded in 1996 by Reakes was split into two divisions in 2002; reselling high-end server systems and recycling old data centre equipment, however the unprofitable SML Recycle closed in 2006.

Reakes is evaluating his next move which may include setting up an IT recycling business.

Selway Moore filed abbreviated accounts for the year to 31 January 2008 - the most recent - that showed a loss of £250,000 on the back of revenues in the region of £7m.

Historic data shows that company failures rise in a post recessionary economy and Alan Norton, head of intelligence at Graydon UK expected 2010 to be no different.

"There will be those that have struggled in the last two years that have run out of cash and were unable to secure more because the banks are not lending; and those that over-trade as the market picks up and are unable to support the business," he said.

Eddie Pacey, director of credit services for Europe at Bell Microproducts, agreed banks were being "less than helpful" in the current environment.

"There are a large number of resellers out there that have run out of steam and are unable to change track," he said.

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