SA-based Adrenalin Computers to close its doors

SA-based Adrenalin Computers to close its doors

Company attributes close to rise in rent, tougher competition and shrinking hardware margins

South Australia-based systems builder and reseller, Adrenalin Computers and Software, will close its doors at the end of the month.

Director, Michael Paley, broadly attributed its closure to shrinking margins and tougher market competition. The catalyst for the situation was an increase in the company's monthly rent by about $1600.

"That is not something we could absorb. We looked at moving elsewhere and then we had a closer look at our figures," he said. "We decided that we are in a market that is still shrinking, so to go through the expense of moving and setting up again in a shrinking market is just not worth the hassle."

Paley said a competitor had also recently moved into the local market, taking away about half Adrenalin's business through an aggressive pricing campaign.

Paley said he was working through paying off any outstanding debts owed to its creditors. No administrators have been appointed.

"It is not an easy decision to make after nine years but there were a lot of factors that contributed to it," he said. "We will be closing the store ourselves."

According to the website, the company has reduced all stock to clear including operational and demo PC equipment.

Adrenalin is one of many resellers in the past few months to close their doors due to tightening hardware market conditions. In January, Perth-based retailer Nintek went into administration. Sydney-based, Plus Corp also called in administrators in October last year. Its assets have since been sold and it is trading as Plus Corp NSW.

Melbourne-based reseller, Computer World, also closed its doors after accruing about $4.5 million in debt.

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