12_tribes - Fotolia
The administrators of Entatech have not given up hope that a buyer can be found for the distributor, which called in KPMG earlier this week.
With the revelation that a potential sell-off to Beta Distribution had collapsed Entatech then slipped into administration in the face of ongoing business challenges.
The firm restructured and took steps to give the business a shot in the arm back in 2015 with Dave Stevinson taking control. He brought back Dabs.com founder David Atherton to add to the management team but the loss of some vendors made life difficult.
"Following a change in ownership and attempts to restructure the business, the loss of key contracts and declining sales has led to a significant drain on the company’s financial situation. This ultimately led to the directors taking the difficult decision to place it into administration," stated the joint administrators Chris Pole and Mark Orton from KPMG.
Reports from the local press indicate that 50 jobs have already gone at the channel player following the move into administration with 29 staff staying on to keep things going while a buyer is courted.
"Entatech has been affected by difficult trading conditions for some time," added the administrators that they would now be trying to do the best to help the business.
“We are currently reviewing options for Entatech and we would encourage anybody who may be interested to contact the joint administrators as soon as possible," they added.
It emerged earlier this week that Beta Distribution had walked away from buying Entatech after the culmination of lengthy discussions.
"Although we have been in discussions for some time, information obtained during detailed due diligence meant we were unable to continue," said Steve Soper, managing director of Beta Distribution.