Online VAR Excite IT has entered into administration, despite UK internet retail sales reaching a record £3bn during November and £3.55bn predicted for December, according to the Interactive Media in Retail Group (IMRG).
In October, CRN revealed that Excite – which sells to consumers and small businesses – was working with its local trading standards office following complaints relating to non- or late deliveries (CRN, 23 October).
According to Excite’s managing director, Paul Graham, these problems have since been ironed out. However, late last month Ideal Corporate Solutions (ICS) was appointed as administrator for Excite.
Andrew Rosler, director of ICS, told CRN: “In view of creditor pressure, the company had to protect its future and entering administration
was really the only option. There has been a lot of appetite from investors, but obviously any investor will want to make sure that there is an accurate and determined way forward.”
As CRN went to press it was believed that a sale of the company’s assets was about to take place. Rosler wouldn’t reveal any details, but hinted at an imminent “sale of the business”.
Eddie Pacey, director of credit at distributor Bell Microproducts, said: “Excite came to us in October, but we declined it credit. We had heard that it owed money to other suppliers.”
Records at Companies House show that another company has been set up by the directors of Excite called Excite IT Business Ltd, based at the same business park as Excite IT. The date of incorporation was 5 September.
“I would guess that they’ve set this company up as a vehicle to buy the assets of Excite from the administrators,” Pacey said.
Tony Price, managing director of online reseller WStore, said: “This proves how tough the consumer space is. The run up to Christmas is always hard because all the big retailers are advertising, which is why we’d never go after the consumer market.”
>> Further reading:
reader comments