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A Dubai-based investment company owned by former Time and Tiny founder Tahir Mohsan has today agreed an interim funding line for Evesham Technology.
PCC Technology has given the struggling system builder a $22m lifeline that will enable it to restructure and continue trading while the directors find a long-term solution.
The news follows weeks of speculation about the future of Evesham which began when chairman Richard Austin announced he was officially putting the company up for sale (CRN 25 June). Four of Evesham's five board members then resigned leaving just Austin at the helm.
CRN tipped TimeUK.com, another business owned by the former Time and Tiny owners, as the hot favourite to buy Evesham (CRN 9 July), while Austin refused to comment and Evesham staff remained in the dark.
Evesham was hit hard when the government decided to abolish the Home Computing Initiative (HCI) in last year's Budget. Those close to the company have claimed the system builder never recovered from the loss of HCI.
Following the news today, Evesham intends to re-focus on direct sales of high-end PC systems and consumer electronics and expand on its channel sales operations with retailers. Most of its own brand retail stores are to close as these have not been performing well, said the company.
Austin said in a statement: “We would like to reassure all of our customers that they will continue to receive support from the same Evesham staff and that their existing warranties will continue to be handled as before."
Mohsan, head of PCC Technology, said: “It is our intention to allow Evesham to continue with no involvement from PCC in the day-to-day operations. We expect the brand to develop strongly and will be looking to divest in the medium term.”
He added: “Evesham is an excellent brand which has always offered a level of service which its customers have grown to love. By funding this restructuring, we intend to allow Evesham to continue delivering excellent products and services to its customers, so it’s business as usual.”
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Do you agree?
life line for who????
As a FORMER employee of evesham technology i am totally disgusted with the way that myself & other members of staff were treated on fri 3rd August.I finished work at 12'o'clock & was asked to return to the premises at 5pm as an announcement about the companys future would be made.
i as with many others returned, only to be seperated into two rooms,one room was told they were made redundant as from then, the others were told they were staying.
what a degrading way to be treated! i have never seen so many people who looked so gutted in all my life.
perhaps they can tell us just how they decided on who stayed & who went..did they put our names into a hat?
Posted by A Gurney | 05 Aug 2007
Uhhhmmm
If it is to be business as usual and Evesham is to concentrate on channel sales then why were almost all the sales guys along with the majority of the rest of the staff made redundant Friday afternoon??
Posted by Luckyone | 04 Aug 2007
Same Evesham Staff....but only 10% of them.
I would like to add to this article and say that at 4:50pm on Friday a meeting was called in the canteen at Evesham HQ and staff were notfied by a representative of the administration team (with the senior management stood behind in silence, staring at the floor) that with immediate effect we were all redundant. Admittedly times have been hard since HCi, but the employees have remained loyal to the company when they could have downed tools as we had been told nothing other than there were parties interested in buying the company (6 weeks ago!). We do not have company redundancy, we have to claim it from the government, if anyone knows anything about this please post a comment, how long could this take? To all current and Ex-Evesham employees, thanks for the good times and doing your best to keep a positive atmosphere. To my ex managers, thanks for all the jobs/promotions. To all my customers, thanks for your business, if i find another job with a similar company you will be hearing from me shortly.
Posted by Angry and Skint | 04 Aug 2007
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