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Computer Disposals ceases trading

Online reseller Computer Disposals has ceased trading, blaming the ongoing court battle with former vendor partner, Dell, for its financial difficulties.

Computer Disposals, a reseller that bought and resold cancelled and returned Dell computer hardware to the retail channel, ceased dealing with Dell in October 2002. At the time, the two companies were unable to come to an agreement over contractual disputes and Dell opened its own online factory outlet.

As reported in ARN, the disagreement centred around Computer Disposals' claims that Dell had failed to honour agreed discounts.

It was also claimed that Dell had overcharged for, and not honoured, warranties paid for by Computer Disposals.

“We’ve run up horrendous court costs,” Computer Disposals managing director, Tom O’Donnell, said. “At this point we’ve ceased trading until we can make a decision on solvency.”

The company was not in receivership as yet, according to O’Donnell.

The company was still focused on winning the court case and remained confident of success, he said.

“We are confident that we are right,” O’Donnell said. “We are confident that the facts are on our side.”

The case goes to trial on May 3.

“I may well have to stand up before the Supreme Court by myself,” O’Donnell said. “But if I have to stand up there in my underwear I’ll still do it. We won’t stop fighting this, even if all we get is gratis in the end.”

Following the conclusion of its dealings with Dell, Computer Disposals attempted to continue doing business by importing and selling other brands including HP and Compaq.

“To be honest, we didn’t do it successfully,” O’Donnell said. “We were a totally Dell-centric operation; we weren’t geared towards anything else.”

Dell refused to comment when contacted by ARN.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: Compaq, Computer Disposals, Dell, Dell Computer, HP

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