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ComputerLand's Newcastle franchise closes

ComputerLand's Newcastle franchise closes

The Newcastle franchise of ComputerLand has closed.

Administrators from Forsythes Chartered Accountants were appointed to the franchisee of ComputerLand Australia on 17 March. Other ComputerLand operations are not affected by the Newcastle closure.

The future of the company will be decided on 17 April, when a creditors' meeting decides whether the company is to be sold or placed into liquidation.

A circular to creditors from Forsythes dated 9 April recommends the company be placed in liquidation, as its sale looks unlikely.

The company has left claims from employees totalling $45,238.09, comprising unpaid wages, annual leave, superannuation and long service leave.

In the event of liquidation employees will receive first cut of any money raised, followed by creditors. Major suppliers to ComputerLand Newcastle were Compaq, Apple and Tech Pacific.

An investigating accountants' report was prepared for Computer-Land Newcastle's creditors by Turnaround Consulting in January of this year.

In the report, franchise rep- resentatives cited excess administrative staff, lack of experienced staff, and an ineffective accounting system as contributing to their problems.

Excessive time in arranging a major charity golf day, which diverted valuable marketing resources from the company's prime function of selling, is also mentioned in the report as a reason for its current position.

The representatives state that: "Economic conditions in the last three months have not allowed businesses to 'drop the ball' as we did and succeed".


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