Doubts are rising in the channel over the financial stability of components and systems distributor Light Computer Systems (LCS).
CRN understands that the Leeds-based distributor, which was set up in 1992, has a number of outstanding payments to several suppliers, one of which is believed to run into a six-figure sum.
LCS is wholly owned by parent company KS Holdings Ltd, which also owns internet services firm Elightcubed and e-tailer PC Outlet Ltd. It partners with more than 70 vendors in the UK, including Computer Associates, Acer, D-Link Hewlett-Packard, Fujitsu, Lexmark, Intel and IBM. The firm also supplies more than 1,500 products.
CRN also understands that the distributor posted a post-tax loss of £300,000 in 2005, according to credit reference agency Graydon.
The firm has since started discussions with at least one of its creditors to pay off its outstanding debt through a weekly payment scheme.
Matt Croucher, finance director at storage distributor Hammer, told CRN that LCS owes his firm just under £30,000.
“We are going to take legal action against LCS and have already sent out a letter from our solicitors giving it a final seven days to pay,” he said.
A source that asked to remain anonymous, said: “The sub-distribution market is currently going through difficulties. We have a situation with an unpaid debt with this distributor. I know that it has had problems paying other suppliers recently.”
Earlier this year, LCS launched its IC Authorised Reseller Programme aimed at independent retailers, resellers and system integrators.
The programme offers members incentives such as a starter kit, marketing funds of up to £5,000 per month and preferential sales leads.
LCS was unavailable for comment at the time of going to press.
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