Wed, 17 Oct 2018 | ADMINISTRATION
Beta Distribution, a specialist IT services and distributor headquartered in London, has fallen into administration due to an increase in competition within the market.
Deloitte has been called in to handle the administration, with restructuring partners Clare Boardman and Richard Michael Hawes appointed as joint administrators.
The pair cited that a number of weeks had passed since Beta Distribution’s credit insurers had withdrawn cover, which was the underlying reason for the company’s downfall.
Joint administrator Clare Boardman said: “Beta Distribution has been experiencing increasing competition in the consumables market and this has placed it under a degree of liquidity pressure and has restricted the availability of credit to their suppliers.
“It is a large importer of products from Europe and has, amongst other pressures, experienced issues with foreign exchange rates."
According to accounts filed on Companies House, Beta Distribution experienced a turnover of £186 million and a net profit of £950,000 in the financial year ending March 2017. Last month, however, it prolonged its current accounting period.
The company’s bankruptcy follows two other major distribution networks; Steljes collapsed in 2016 and Entatech in 2017 which Beta Distribution was considering acquiring before it withdrew last minute.
Its Belgian network is not subject to administration and will continue its trading operations.
Managing director of VIP (a components distributor) Rich Marsden commented on the situation, stating that: “It’s always sad to see a brand that has been around for as long as [Beta Distributions] go. I don’t know what the underlying issues are, but the market is tough.”
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