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Integrity Data Systems goes into administration

Integrity Data Systems goes into administration

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Specialist wireless distributor, Integrity Data Systems, has been forced into voluntary administration following an unsuccessful attempt to expand nationally.

The company appointed Sims Partners to act as administrators after CEO and company director, Ross Chiswell, made the decision to wind up its operations earlier this month.

He blamed the company's aggressive growth strategy across Australia as the catalyst for its demise.

"We made expansion plans that didn't come off last financial year," Chiswell said. "We didn't react quickly enough to the monetary losses that came as a result of this decision."

Integrity had invested in a variety of new sales roles, he said, including the appointment of southern and eastern regional sales managers in July and August last year.

At its peak, Chiswell said the distributor had about 16 staff. It currently had six employees.

"We gave people too much time to provide returns and grow the business," he said. "It didn't eventuate, which hurt like hell. It is unfortunate because we were going for 10 years, eight of which had been great. But in the last two, we caused ourselves grief."

Integrity, which is based in South Australia, was founded in 1996. Its main focus is distributing and supporting indoor and outdoor wireless technologies, ranging from wireless LAN to specific point and multipoint solutions like free space optics.

Chiswell insisted the decision to go into administration was independent of its recent loss of contracts with wireless vendors, AirMagnet and Bluesocket, who both switched to Firewall Systems last week.

He also rejected the suggestion that the market was not responding to its business model.

Federal Government financial incentives, such as the broadband HIBIS scheme, were giving the market further reasons to adopt wireless technology, Chiswell said. But he admitted people still weren't fully aware of the various wireless technologies available, making it more difficult to sell product.

Integrity is still trading under administration. The company's administrator, Des Munro, was confident that the business could be sold intact.

"It has a good name in the industry, and we have had good feedback so far," he said. "We want to sell it as quickly as we can so there is no impact on customers."

The first creditor's meeting has already been held. A second is scheduled for October 27. Expressions of interest will close on October 28. Integrity had about 30 creditors, many of which were overseas suppliers, Munro said.

- For more on this story, check out this week's edition of ARN.


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