Six weeks after reseller Computer Disposals closed its doors, blaming the cost of its ongoing legal battle with Dell Computer, the former partners have reached an out-of-court settlement. But the agreement may have come too late to reverse the fortunes of the North Sydney-based reseller.

Computer Disposals had been locked in a longstanding contractual dispute with Dell since October 2002. The terms of the settlement were undisclosed. It was hammered out just before the two parties were due to meet again in court last week.

As previously reported in ARN, Computer Disposals' resold cancelled and returned Dell hardware into the retail channel. The arrangement ceased in October 2002. Dell then opened its own online factory outlet.

Computer Disposals managing director, Tom O’Donnel, said the fate of the company still lay in the balance.

“We’re just reviewing the options now,” O’Donnell said. “The court case cost us significant funds. We wouldn’t be solvent to commence trading today.”

He was considering taking the business in a new direction, as its previous model had been very Dell-centric.