Time passes on financial rumours

Time Computers is adamant that its business remains healthy, despite rumours that a top accountancy firm is helping the company sort out its finances.

An industry source alleged that accountancy firm PwC is taking on an "advisory overseeing role" to help the company get "back on its feet properly".

The source also claimed that Time had been relying on good January sales to boost its end-of-year figures, but had been let down by lower-than-expected demand.

However, a representative from Time rejected the claims. "We do not have a financial situation. We categorically denied this over a month ago. Time is in a strong financial position with healthy cash reserves," he said.

The representative declined to confirm or deny rumours that PwC was helping Time sort out its finances. A PwC representative also refused to confirm or deny the rumours.

A former Time upgrade technician contacted CRN, claiming that a large number of technicians had been asked to leave this month without warning.

"Everyone in my department was handed a letter saying we had lost our jobs," the former employee alleged. The letter was "completely unexpected, considering that most of the staff had worked for the company for only a couple of months," he added.

This latest move has fuelled speculation about the state of the PC retailer and manufacturer's finances. Last month, the company insisted its business model remained robust, following rumours that it was in urgent refinancing talks with HSBC Bank.

The company admitted to a "realignment of its core business" as part of a strategic and operational review in light of the "downturn in sales within the global PC market".

"As part of this review, a small number of technicians have lost their jobs in stores nationwide," a Time representative confirmed. He said the firm expects to be in an excellent position later this year, and will achieve strong sustainable growth.