The parting of the ways between HP and former authorised distributor, Dynamic Supplies, has hit the courts.
HP had sought $5.2 million in outstanding debts from Dynamic Supplies. The two appeared in the NSW Supreme Court last week, and Dynamic claimed to have paid up in full.
“The matter was resolved,” Dynamic Supplies managing director. Alex Piccinini, told ARN.
But Dynamic is in turn pursuing claims against HP worth $1.4 million, according to financial controller, Kerry McKevitt.
The dispute was the result of the terms under which Dynamic’s authorised distribution contract with HP had ended, he said. Dynamic was seeking to have price protection claims and faulty returns claims honoured, as well as an agreement for the return of stock, McKevitt said.
Dynamic Supplies ceased to be an authorised distributor for HP on September 30. At that time, managing director, Alex Piccinini, told Dynamic customers that its decision to quit as an HP authorised distributor had been well considered and negotiated with HP.
While no longer an authorised HP distributor, Dynamic continued to distribute HP product, McKevitt said.
“We’re not going to let our customers down just because we’ve parted ways with HP.”
While an authorised distributor, Dynamic had been doing “$80 million with HP a year,” he said. “We were doing $7 million-$8 million per month.”
HP had accounted for up to 40 per cent of its business at that time.
An HP spokesperson said the company couldn’t comment on ongoing legal matters.