The demise of Watford Electronics has had a knock-on effect on sister company Redten Communications, with a “temporary suspension” to its Redten Internet service put in place last week.
As reported by CRN, Watford Electronics entered administration owing almost £8m (CRN, 12 February).
Redten Internet was a separate enterprise launched in October by Watford in conjunction with BT Wholesale, Intel, LG, Microsoft, Lexmark, Belkin, and F-Secure, to provide a broadband package for £19.99 a month, over a three-year contract, with a free PC thrown in.
Shiraz Jessa, managing director of Watford Electronics, claimed last year that 100,000 end-users would join the scheme in the first 12 months (CRN, 23 October).
Last week a note appeared on Redten’s web site claiming that the company had “run out of free PCs” and the service had therefore been “temporarily suspended”.
As CRN went to press, Redten’s phoneline relayed the following message: “Our lines are currently closed. Due to the high demand of the new service with a free PC we are currently out of stock and awaiting a delivery.”
Smith & Williamson, Watford’s administrator, said in a statement: “We have received a number of queries regarding the status of other companies that are or have been associated with Watford Electronics, such as Redten Communications. We understand that these companies traded independently of Watford Electronics and are continuing to do so.”
Martin Prescott, managing director of VAR Red PC Services, said: “Redten was intended to be Watford’s lifeboat. The fact that Redten didn’t take off as anticipated could mean that Watford’s lifeboat didn’t save it.”
A creditors meeting for Watford has yet to be set.
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