TodayTech appoints administrators
- 07 October, 2009 16:51
- Comments 25
Australian assembler and distributor, TodayTech, has gone into voluntary administration three months after losing a direct supplier relationship with key vendor partner, Intel.
Rob Whitton of William Buck Chartered Accountants was appointed administrator by TodayTech’s directors on October 7. He said the business was likely to close in the next week.
“It is early days but the reality is the business will close down,” he said.
All stock would be sold off, and it was hoped a buyer could also be found for TodayTech’s logistics facilities, Whitton said.
Headquartered in Sydney, TodayTech also maintains offices across Australia and has about 30 employees.
Whitton estimated TodayTech had up to 60 unsecured creditors along with one secured creditor. He was unable to verify how much was owed given creditors were paid in both Australian and US dollars.
Whitton attributed TodayTech’s demise to the changing nature of the whitebox industry. The company also suffered a major hit when it lost its 11-year direct supplier relationship with Intel in July. At the time, TodayTech managing director, Jack Zhong, told ARN it would endeavour to soldier on by sourcing a broader range of finished goods.
“The industry has changed dramatically – there’s no doubt the company was impacted by the global financial crises, but also longer term,” he said. “Once upon a time, you would buy a PC box made by a whitebox company like TodayTech. Today it’s all Dell and the bigger brands, which have taken away from the whitebox market.
“The business has been in a slow decline for a number of years.”
Whitton said TodayTech’s directors were very sad to be forced to exit the business after nearly 20 years operating in Australia.
The first creditors meeting is scheduled for October 19.
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Comments
Anonymous
1
POOR TODAYTECH
SAD REALLY
Anonymous
2
You can thank Intel for this.
Anonymous
3
todaytech always supported all there clients no matter how big or small they were no minimum buys always happy to talk to you on the phone always there with ideas or hey look ya need one of these as well it would be a shame to see it go completely try restructure try different business plans try something to let it go after 20 years would be sad and a loss to the industry
to the perth staff gonna miss ya where we going for a drink
Dazza
4
Will there be more?
I fear TodayTech will not be the last Aussie IT company to go broke this year - in fact I think the trickle may well turn into a flood. I feel everyone is putting a brave face on, but underneath most small IT businesses - disties and resellers - are doing it tough. At the moment I reckon a lot are only ticking over because:
1) the owner has halved his monthly take home pay; and
2) the kindly tax man has provided time extensions to pay GST and PAYE tax.
Anonymous
5
too bad, your gone gone gone
thats the way it goes, oh well atleast as a reseller I won't have to compete against them anymore, one less disti that also wants to sell direct.
billy bob
6
I heard MMT were going to buy them, is that true?
would be good as MMT are great to deal with too.
Anonymous
7
Ex Sydney Employee
It was only a matter of time. Bad processes, low staff morale and heavy overtime working with razor-thin margins.
I do feel sorry for the recently lost staff, however they will not have been surprised by this news, and hopefully are already looking at the greener grass
Anonymous
8
Sign of the times unfortunately
As an ex employee years ago, I'm sad to hear this news. Todaytech had grand plans, had manufacturing in China when virtually unheard of, nd competed with entities continuously opening and closing, then reopening to avoid tax liability.
However, over the last few years, the whitebox has all but dissapeared with the general populous, and with strategic alliances now becoming more international than national, things like this are bound to happen.
While difficult to deal with at times, Jack started from a small Sydney computer store to a national (and slightly International) organisation. These were the dreams the IT industry was built on.
I wish the staff and management all the best for the future - another chapter in the Aussie IT industry is about to close.
Good luck Jack and staff ..
Ex TODAYTECH Staff
9
It is sad to see TODAYTECH goes down today that I use to work there for 17 years... Feel sorry for the staff that also there for long time until today ( 10+ Years ), Phil , Simon, Karen,
Life goes on , Wish them well for what ever they do in the near future
....
Anonymous
10
The demise of whitebox PC builder business
No matter who is in charge of government, free trade is their policy that not one business can stand in front of their way. We are too small to worries about. No matter you are Optima or Todaytech, you only contribute to small harm to job lost. Nothing is too big to fall other than big banks. We are not union has no power to bring down the government like electricity privatisation. No wonder why Australia is losing manufacture and factory type of small business. The government is only favouring big international brand and never care about local PC builder. All government big contracts are written for big international brand. We are fighting a losing battle as our overhead is much more than other developing countries. We also need to paid lots of cost to fulfil taxes, work covers, minimum wages at 38hr/week, un-sick sick leave & environmental costs etc. We are facing both front internal & externally. With all bad news why should I run my business? None of above you can change other than yourself. If there is a dead wall in front of you, you better go around it. Small business is flexible. Dell wants to sell you a $800 PC why you should under cut them and focus on something doesn’t has margin. You are not tried to sell something regardless of cost. Business must be profitable. We should focusing on something has return and benefit your customer ether. You must treat your staff as your asset and value their contributions. So they don’t trick you with sick leave. In term of business down terms, try to talk to them to reduce work hours in order to keep everyone’s job. To widen your customer base, you can use internet and other technologies means to achieve it. Do something big business can’t do. If your customer want brand name PC like Dell, don’t sell them whitebox but offer them better HP PC/servers. If government tender is beyond your capability, focus on other government needs that you are qualifies. There is no dead end if you keep digging. We were suffering down term too. I am using this time to strengthen my business. I was too busy for pass few years and never ever has time to diagnose my own business. The financial crisis gives me a wake up call. I do have natural loss of staffs. I take this opportunity to think my whole operation. End up I can do similar turnover with less staff by improving productivity. By thinking today or yesterday your business will never move forward. I feel sorry for Optima and Todaytech. Anyway, if you want out of wood, you can only walk your way out!
Ben Travia
11
Today Gone --- Sad To See
Ive been dealing with these guys for years and while they did direct sell and were in competition at times they were always helpful and had stock sometime when others didnt ...
im sorry to hear it guys all the best with future positions..
Ben Travia
Anonymous
12
Customer service rules
As a South Australian small business consultant and VAR I was never a big spender with wholesalers but I am a regular spender. Hallmark treated me as a nuisance, as did Omega, as did Todaytech. Each time one of these people made me feel unimportant and as if my small trade was not worthy of their time, I stopped using them. It appears others have done the same and these companies sowed what they reaped.
Ghandi of IT
13
I guess when you refuse to do warranty on heaps of your products, refuse to sell to other customers and act like you are king all the time, it must hurt.
TODAY TECH TOMORROW GONE I HAVE BEEN SAYING IT FOR 6 MONTHS
But really, if you base your key business around selling CPU, no matter how great the rebate from Intel is, you can't last that long. I think it also had to do with some of the PM's who had no idea how to support their company at all...
I am sure that some of the "known" staff will get cushy jobs in other disties anyway...
Anonymous
14
If you don't pay your Vendor, how can they support you?
Anonymous
15
You got the point. However, please also consider that if Government favours the local whitebox vendors for same PCs but at higher prices with taxpayers' money, would you be happy as a taxpayer? I believe that if Government would favour local suppliers, they'll have to pay more for PCs at same specs they can get from a international vendor, they saved for taxpayers.
Anonymous
16
Another bite the dust
To be honest I rather spent a bit more to get a Hp build machine with 3 years onsite warranty then buying a white box clone machine. And That's what most of our local gov does.... Dell or hp that all they using
Anonymous
17
i think at a time like this its best to sit down take a good look in the mirror and think about what Jesus would do...
Anonymous
18
very sad to see our supplier go
Mister Meccano
19
Would you buy a compontised car?
Ask yourself, what other product be it a CAR, Truck, fridge, TV, Washing machine, or pretty much any itme would buy in the same way people approach the purchase of "locally assembled" rubbish (which includes ACER).
There is a reason why IBM have the most technology patents in the world.
If you want your product to work, keep working and the company to be around to bring out bigger better faster you actually have to contribute to that with MONEY. How else will the future of IT survive if everyone buys the copy-cat products and not the products the inventors and innovators of technology are designing and manufacturing.
I shudder to think what the buyers of these meccano kit style computers household looks like - full of low priced, loq quality rubbish.
Sometimes the bleeding obvious still eludes the so called learned.
NWS
20
NWS supports local Resellers w Australia-wide local warranties
if only TodayTech had agreed to add a 12 month Aust. wide NWS on-site warranty with a three upgrade option to all their systems :-))
(not to be confused with outher warranty copmanies. we actually deliver the service we promise.)
and if they were competing with their Resellers then they prob deserve what they get. isn't it enough having to compete against Dell and Acer who just flat out buy market share, without having your distie as well???
with market downturn, it was prob likey that the most marginal, or the least broadly based would go to wall, and Intel was straw that broke camel's back.
don card
general manager
Anonymous
21
shame a reall shame
best of luck and wishes to George and the crew at the Adelaide branch
thanks for the last 8 or 9 years of suport
Anonymous
22
Support a competitor that can turn on you
I dealt with TT years ago as a small VAR. now I look after the banking industry and like govt - its all hp, acer, dell, ibm/lenovo.
These organisations regard pc's (and servers) as light-bulbs in their approach to repairing/maintaing them. If there is no quick fix, reinstall windows via windows deployment or novell zen - problem still there? swap-out and send faulty back to workshop for manufacturer to fix under warranty. Once warranty finished - hardware gets shreded.
Sad to see TT sink, but as I can see - it has always been bad policy to support a supplier that can turn against you as a competitor - as they can always undercut you or price you out of the market.
I used to assemble pc's in a online-ups and critec over-voltage protected workshop with state of the art anti-static and kvm to build multiple machines concurrently.
Most customers regard price and warranty a higher priority than all that and if anything goes wrong want to call a service desk and get it fixed at no expense to them.
These days - I wouldnt bother building - I would just go with offering the big name brands that steer away from direct selling with a hard line on competitive pricing and bundling manufacturer onsite warranties.
Problem is and I know this from working in big business - a lot of them deal direct with the big name brands in private anyway.
Small whitebox dealers and big-name resellers are screwed when it comes to big business deals. My sympathies to the little guy - keep scraping the bottom of the barrell.
"Money is like manure - hoard it ant it will stink - spread it around and watch stuff grow from it."
Anonymous
23
Sometimes they were hard work
Sometimes they were hard work, no delivery, no mention of a problem, my customers promised systems or repairs only to be held up by todaytech delivering parts, if you dont have something and dont know when you're getting it just say so, dont say "it's coming tomorrow". whole orders delayed because of 1 part. Maybe it's a lesson to other suppliers who act this way (cough cough amicroe)
Anonymous
24
reseller or distie - make up your mind
Today Tech deserves its fate.
So did Osborne, Optima, & an endless list of desperate OEMs.
Remember Epson going direct & losing 1/2 their staff to barely survive? Acer attempted the dual role too.
There exists a reseller level of IT business, & we won't put up with arrogant vendors & disties trying to stab us in the back.
IBM & HP still sell direct. They should heed the warnings.
DELL are trying to sell to resellers - That’s nuts.
Apple screw resellers every day.
Sad for naughty assemblers going broke? not likely.
I'm sad for poor stupid staff that put up with their greedy bosses.
Anonymous
25
another one bites the dust
Have been dealing with todaytech for arounbd 15yrs, certainly sad to see them go although we had 15 account managers in 15yrs, even one agreed to meet us on site to deliver some of our goods that we needed urgently, there was some great people who worked there. Never had any serious problems that I did not experience with any other vendor.
I am starting to run out of vendors. :)