Mitek Computer Components will officially launch its wholesale business model this week and is preparing to open its showroom doors on Wednesday.
The Staffordshire-based firm, which entered a Company Voluntary Arrangement (CVA) earlier this year (CRN, 10 October) revealed to CRN that it would be getting out of the distribution sector and then rebranding its business as a wholesale supplier (CRN, 24 October).
Malcolm Roach, Mitek Group managing director, said: “The model we are operating is a hybrid between Argos and Macro, but specialising in electronics. Whereas Macro and Argos sell anything and everything, we will just concentrate on being a wholesaler of electronic components.”
Roach said its customers, mainly resellers and retailers, will receive a Mitek Electronics trade card and can buy goods at wholesale prices.
He added the showroom will feature the complete range of Optronix products (part of the same group as Mitek), but the firm is also “in discussions” with a number of big-name vendors to display their products in the showroom.
“We cannot reveal any names as we are still waiting for confirmations,” Roach said.
Nitin Joshi, director at accountancy firm Vantis, which oversaw the CVA, said the new business model should do well.
“Malcolm is an ambitious man. He has a proven record in building channel businesses. A wholesale business supported by an online catalogue and a trade card is a very good idea. Customers can see what they are buying and have a qualified techie on standby. Simple and effective.”
However Eddie Pacey, director of credit at Bell Microproducts Europe was more reserved.
“This kind of move was on the cards for some time, but I don’t think the new company will be anything on the scale of the old Mitek – it will be a more scaled-down business. It will be interesting to see what happens.”
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