Protac puts warehouse on the market, hits out at demise rumours

Protac puts warehouse on the market, hits out at demise rumours

Managing director again denies company is going out of business

Components distributor, Protac, has denied persistent rumours it’s going out of business but confirmed it has placed a large portion of its warehouse up for sale or lease.

Earlier this month Protac managing director, Gary Jeng, said the distributor was radically changing its structure and reducing staff due to falling profits, but claimed the NSW Silverwater warehouse would remain in Protac’s hands.

The warehouse is now listed as being up for sale or lease at, which is a popular website for commercial property. ARN understands the entire warehouse property is up for sale or lease.

Despite the listing, Jeng dismissed rumours Protac is going under and said it was doing as well as anyone given the state of the economy.

Jeng said he would sell the warehouse if offered a good price, and then use the resulting funds in a non-Protac related investment.

“Nobody in the industry is as financially independent or financially strong as Protac. We don’t need such a big warehouse. We’re leasing part of the warehouse and we’re looking for tenants. Protac has no debt - why should it close?” Jeng said.

“We put that on the market to get feedback on how much we can get. If we have a good price offer we will sell it and we’ll move to the smaller unit.”

Jeng hit out at negative rumours being spread about the company, laying blame on small wholesalers that were former competitors.

“I just want to say to them that we’re not interested in that type of business anymore… we have about 10 [staff]. It’s still quite healthy and everything is fine. It’s just that we’re not interested in fighting with them for selling a CPU or a RAM, a keyboard,” he said.

“I don’t see anyone in wholesale that will tell you they’re making good profit. If they’re not losing money that’s good enough.”

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