Compaq has vehemently denied industry speculation that Coles Myer has followed the path taken by Harvey Norman recently and discontinued its relationship with the vendor.
Although a Compaq spokesperson admitted Coles Myer "was unhappy with certain decisions Compaq have made recently we have continued to work closely with them and the latest we have heard is that they will continue to work with Compaq".
The spokesperson said neither managing director Ian Penman or general manager, business consumer, Greg Healy, who has been in charge of establishing Compaq's retail and channel strategies, are aware of any decision from Coles Myer to abandon Compaq products in its stores.
"We have not been informed of any move by Coles Myer to stop dealing with Compaq. That is just pure speculation," said the spokesperson.
Coles Myer's IT buyer, Peter Geer, said Coles Myer would continue to sell Compaq products in its stores. He has been in discussions with Compaq for the last couple of days on a range of issues, details of which he would not disclose.
However, the two parties have made no resolutions to change the current relationship and Geer is confident the partnership will continue.
"It is always a concern when a supplier becomes a competitor but it has happened before and there is always room for compromise," said Geer.