Everything on sale at Siltek
- 03 August, 2001 09:43
The assets of fallen distributor Siltek are up for sale after administrators, Prentice Parbery Barilla, completed its evaluation of the business.
PPB's Peter Rodowicz said options were open as to how the company will be sold off. Next week, a selling document listing all goods will be made available. In the meantime, however, offers for any combination of Siltek assets would be considered. He said he would think about selling the remainder of the company as a whole, or sell assets such as the customer lists, agencies (contracts) that may be transferable, or even arrange for the sale of the premises.
Rodowicz said all of Siltek's major competitors have contacted him personally to discuss what assets are of interest. "They will be the first cabs off the rank," he said. "Most of the switched-on CEOs have rung me and I am hoping for visitations as early as this afternoon," he said.
Rodowicz was unable to reveal exactly the distributors he is in discussions with. Synnex's Frank Sheu and former Siltek managing director Hugh Evans did not respond to ARN's offers to comment on their interest in the assets of the fallen distributor.
Although everything is up for grabs, Rodowicz said he will try and sell the assets as bigger chunks if possible at first, and once major bids have been taken care of, he will auction the rest of the assets. He said if necessary, he will work down to the level of the retailer offering bargain prices on stock. "A lot of the time you never get to a firesale," he said. "You get surprises - in some circumstances a manufacturer is prepared to buy stock back before it gets to that stage, so the market isn't flooded with cheap products."
For the last few days, Prentice Parbery Barilla has been negotiating with vendors over what stock belongs to Siltek and what belongs to manufacturers under retention of title clauses. These clauses determine that if a distributor does not pay a manufacturer for goods, the manufacturer still owns them and can elect for them to be returned. While vendors like Hewlett Packard are successfully claiming back most of the stock it owned, he said many vendors were not that keen to receive outdated stock back, even if they owned it.