Niche multimedia and broadcasting distributor, Focal Point Digital (formerly Focal Point Computing), has closed its doors and gone into voluntary administration.
CJL Partners was appointed as administrator on April 11. Company administrator, Michael Carrafa, said the major reason for Focal Point's demise was its shift away from graphics video cards to broadcasting. The Melbourne-based distributor's core partnership was with multimedia editing vendor, Matrox Video Products Group.
"The company was moving into the broadcasting business but unfortunately it hasn't worked," he said.
Carrafa claimed there had also been an altercation between some staff, with one employee alleging funds had been misappropriated. CJL was now investigating the claim, he said.
Focal Point's total debts are just below $1 million including employee entitlements. Carrafa said it had two secured creditors, who were owed up to $450,000 in total. There were also several smaller unsecured creditors. The first creditors' meeting had already been held, with a second planned within weeks.
Carrafa said creditors would be supplied with a report on the viability of the business shortly. The company's assets, including intellectual property, have also been put up for sale.
In light of Focal Point's closure, Matrox has appointed NSW-based multimedia distributor, New Magic Australia, as its sole A/NZ supplier. The distributor will also offer technical support.
Managing director, Mark Harwood, said it had previously distributed Matrox before Focal Point's appointment five years ago.
The two parties parted ways when New Magic combined with Matrox rival, Canopus.
The two had since split into separate companies, allowing New Magic to pick up Matrox once more.
The products were complementary to its existing selection of software-based editing tools, Harwood said.
"We have only done Sony's range of video editing products, which are purely software based and do not use dedicated hardware," he said. "Matrox is so complementary because it develops hardware-based editing solutions."
The distributor would look to bundle the Matrox products with its range of Sony audio products.
Harwood said Focal Point's existing sub-distributor, Multimedia Technology, would continue to sell the Matrox products. New Magic was also considering pushing the consumer range of products through its other sub-distributor, Ingram Micro.
"These products are coming down in price and becoming more accessible, so we're likely to see more powerful video editing solutions come through to mainstream PCs," he said.