Software Warehouse has scuttled its Tashika brand but salvaged its Northwood brand following the end of a strategic review of its PC operations.
The decision came after production of both brands was suspended on 4 June for two weeks pending a final decision from the reassessment (PC Dealer, 17 June).
The mail-order and retail company will continue to operate a cut-down Northwood operation. The manufacture and sale of Northwood PCs will resume on 30 June.
Steve Bennett, managing director of Software Warehouse, confirmed the move. 'We are stopping the Tashika brand. It was entry level, but we were not making money on it. We will continue with a trimmed down line of Northwood PCs. It will be a smaller operation with two or three models.'
Bennett cited a particularly competitive market, small margins and difficulties with stock management as some of the reasons for the company's failure to develop the operation.
Software Warehouse had invested heavily in the operation, establishing a home delivery and installation service which it is hoped will continue.
Bennett has axed 19 staff as a result of the restructure, mostly from the manufacturing lines. The move was particularly difficult - one of the company's claims when it gained the top spot in The Independent's listing of the UK's fastest growing companies in May was its very low staff turnover.
Pete Day, analyst at Inteco, commented this was symptomatic of an industry going through a shake-out. Bennett added he intended to continue the rollout of retail stores.
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