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BCN loses credit facilities

BCN loses credit facilities

The future of NSW-based hardware distributor, BCN Technology, is in doubt after several key vendors put its credit facilities on hold.

MSI country manager, Frank Chen, confirmed the motherboard manufacturer stopped providing credit to the distributor two months ago and was still owed money. It had not been given any indication when the debt would be paid. As a result, it was currently reviewing the distribution relationship.

Although BCN is still on its books, LG national IT channel manager, Charlie Harb, said the relationship was being monitored.

"We knew it was financially strained over the last couple of quarters," he said. "It has been a longstanding distributor with us for the past 10 years, so we want to give it every opportunity to bounce back."

Harb would not comment on BCN's credit status but said the distributor had not purchased any stock in the past month. Representatives from Swann Communications and ThermalTake said they were also awaiting payment. Both suspended the distributor's credit account 6-8 weeks ago.

"BCN put systems in place to pay us back and have timelines to meet," Swann national sales manager, Rick Phelps, said. "We hope it will be able to meet that schedule."

Mitsubishi general manager of digital electronics, Richard Freggi, refused to comment immediately but said that situation could change in the next couple of weeks.

NetComm managing director, David Stewart, said the local networking vendor had stopped transacting with BCN earlier this year but was not owed any money. The distributor was an OEM partner with limited supply to product.

"We have chosen not to supply BCN anymore," he said.

The next couple of weeks are expected to be a key indicator of whether BCN can ride out the storm and overcome its financial difficulties. In the meantime, a staff member said the Queensland branch was being relocated to an undisclosed location. The Victorian branch has also been closed.

BCN management were unavailable to comment at the time of press. Calls to the NSW head office went unanswered. The website is also down.


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