Misco has gone into administration this week after HMRC issued a winding-up order over unpaid taxes. The reseller had been in operation for 22 years and has had to let go 300 employees. 30 members of staff remain to assist administrators and help sell off stock.
The company has gone under just seven months after US parent company Systemax sold the majority of its European operations in a management buyout. Post MBO credit insurance terms became unfavorable which has severely impacted cash flow.
In an attempt to save the company there was an attempt to sell the operation to US reseller PCM but HMRC’s refusal to agree a payment schedule for unpaid VAT blocked a sale.
Mike Norris, CEO of Misco UK’s rival Computacenter, said that the reseller business is quite good for most right now.
He said “In general resellers are doing pretty well at the moment. If you’re struggling at the moment you need to look in the mirror…
“One thing it does say about the industry is the importance of being well-financed as an organisation. You don’t want some debt-laden business in this industry because it’s growing quite fast at the moment. A strong balance sheet is going to help you. But this is a bit like saying today is Thursday – it’s not exactly news.”
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