Osmosis is pulling out of the hardware sector as part of a far-reaching restructuring operation aimed at rescuing the distributor from its cashflow struggles.
The West London group will lay off about 50 staff as it reorganises around its software, commodity brokerage and internet operations.
John Fenton, managing director of Osmosis, said: 'We have experienced some enormous challenges as a result of some dreadful problems that have beset us recently.'
He added: 'Despatch problems from a third-party organisation have added significantly to all the usual industry problems, such as difficulties with credit control and eroding margins.'
Fenton also cited cutthroat pricing in the PC sector: 'How can we compete with PC World selling PCs for #399 including VAT? I've always said that to survive in this business you get big, get niche or get out. We are getting out.'
Fenton added Osmosis would sell a freehold building and use cash from outstanding debts to pay off creditors any monies owed. It would table an 'informal' proposal to creditors at a meeting to be held shortly and said he would appeal for a 'common sense' approach.
Although Fenton claimed no one had yet made an offer for any part of Osmosis Technologies PC business, he refused to rule out a sale in the future.
Nitin Joshi, director at chartered accountants Pannell Kerr Forster, said: 'Creditors will need to look at this proposal carefully. The alternative for them is that they will get nothing.'
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