Perth retailer goes under
- 07 January, 2008 13:58
A spokesperson from the administrators of Perth-based online retailer, Nintek, has suggested toughening market conditions and inadequate management skills could be behind its demise.
Nintek's parent company, Zoom ITG, appointed accountancy firm, Dickson Carrello, as a voluntary administrator on December 21. Both companies have also ceased trading. A spokesperson for Dickson Carrello said it is looking to sell off both companies assets and IP. It will recommend creditors put Zoom ITG and Nintek into liquidation at a second meeting later this month.
The Dickson Carrello spokesperson claimed the falling cost of IT hardware, coupled with Nintek's young and inexperienced management team, were contributing factors. He said Zoom ITG had been trading profitably prior to administrators being appointed.
Zoom ITG sold software to the dental sector, while Nintek operated as an online-only seller. The administrator's spokesperson estimated total debts of $100,000, but said it was still contacting creditors. There were five staff prior to administration.
Nintek customers on user forum sites such as Whirlpool have criticised the retailer for pending hardware orders. One unofficial customer creditors' site reported over 60 customers are owed more than $35,000 for products ordered but not supplied. The Dickson Carrello spokesperson admitted customers were unlikely to see a return from the sale of assets.
Nintek's website is still active but orders are not being processed, the spokesperson added.
Nintek is one of several independent retailers that have hit the wall in recent months. Last October, NSW-based online retailer, Plus Corp, called in the administrators after being unable to pay off supplier debts. At the time, Plus Corp managing director, Nigel Fernandes, attributed the decision to toughening market conditions. Its assets have since been sold and the business is now trading under Plus Corp NSW.
Melbourne-based retailer, Computer World, also closed its doors late last year after accruing debts of more than $4.5 million.