Australian assembler and distributor, TodayTech, has gone into voluntary administration three months after losing a direct supplier relationship with key vendor partner, Intel.
Rob Whitton of William Buck Chartered Accountants was appointed administrator by TodayTech’s directors on October 7. He said the business was likely to close in the next week.
“It is early days but the reality is the business will close down,” he said.
All stock would be sold off, and it was hoped a buyer could also be found for TodayTech’s logistics facilities, Whitton said.
Headquartered in Sydney, TodayTech also maintains offices across Australia and has about 30 employees.
Whitton estimated TodayTech had up to 60 unsecured creditors along with one secured creditor. He was unable to verify how much was owed given creditors were paid in both Australian and US dollars.
Whitton attributed TodayTech’s demise to the changing nature of the whitebox industry. The company also suffered a major hit when it lost its 11-year direct supplier relationship with Intel in July. At the time, TodayTech managing director, Jack Zhong, told <i>ARN</i> it would endeavour to soldier on by sourcing a broader range of finished goods.
“The industry has changed dramatically – there’s no doubt the company was impacted by the global financial crises, but also longer term,” he said. “Once upon a time, you would buy a PC box made by a whitebox company like TodayTech. Today it’s all Dell and the bigger brands, which have taken away from the whitebox market.
“The business has been in a slow decline for a number of years.”
Whitton said TodayTech’s directors were very sad to be forced to exit the business after nearly 20 years operating in Australia.
The first creditors meeting is scheduled for October 19.