Failed distributor blames telco troubles

Failed distributor blames telco troubles

Victorian distributor, CW Supplies, has blamed telecommunication problems as a major factor in its demise.

The company, which had 11 employees, stopped trading last week after 15 years in business.

According to a statement on its website, CW spent 35 days without adequate communications after relocating in March, despite having signed an agreement with an unnamed telco in January.

"The inability for our customers to establish contact had an immediate and dramatic effect. Despite every effort by our staff over the past five months, we have ceased trading," the statement read. CW Supplies owner, Louise Adamiac, said it had been supplied with two mobile phone numbers to run the business while the telco rectified the problem.

"Our customers couldn't call through on our normal number," she said. "I don't want people to think we just shut our doors and haven't tried. "The damage was done over those 35 days because, as anybody in business knows, cash flow is the most important thing." Multimedia Technology general manager, John Hassall, said it sold components to CW and was owed about $30,000.

Todaytech managing director, Jack Zhong, said his company stopped doing business with CW Supplies about three months ago after hearing the company was in trouble.

Bluechip Infotech sales director, Ron Jarvis, said it had previously dealt with CW on a regular basis but admitted transactions had slowed since the business changed hands.

"We didn't do much business with the new owners and what we did was either money up-front or [third-party finance] through MoneyTech."

Computer Talk proprietor, Andrew Hogan, said he was disappointed about the closure because he had dealt with CW for years.

"Sometimes their prices weren't the best, but their backup support was better than the regular crop of retailers," he said.

"Getting support is the tricky thing, so I'm actually really disappointed I've got to find someone else."

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