Appointed receiver, Ernst & Young has closed the doors of beleaguered distributor CHA after failing to convince creditors to continue to trade with the company. Meanwhile, having secured the Toshiba distribution Ingram Micro has also picked up nine former CHA employees including former managing director, Roger Bushell.
CHA's receiver and manager Michael Scales told ARN he was unable to maintain the viable operations of CHA after the loss of the Toshiba contract and, as a result, he was forced to fold the company.
Pink slips were distributed to the 30 remaining employees and the recievers prepared for a fire sale of the remaining stock in an attempt to recuperate CHA's outstanding debts which the receivers place in the "millions of dollars" range.
According to Scales, former employees and secured creditors would receive their entitlements. However, he didn't hold out much hope for non-secured creditors.
Ingram Micro managing director, Steve Rust told ARN he was pleased to take on some of the former CHA staff, as they will enable the rapid expansion of the company's newly-won Toshiba distribution business.
"We have made nine job offers and most of those have been accepted," Rust said. "There were some good staff at CHA and we are pleased to have them in order to ramp up our new Toshiba business."