A Dubai-based investment company owned by former Time and Tiny founder Tahir Mohsan has today agreed an interim funding line for Evesham Technology.
PCC Technology has given the struggling system builder a $22m lifeline that will enable it to restructure and continue trading while the directors find a long-term solution.
The news follows weeks of speculation about the future of Evesham which began when chairman Richard Austin announced he was officially putting the company up for sale (CRN 25 June). Four of Evesham's five board members then resigned leaving just Austin at the helm.
CRN tipped TimeUK.com, another business owned by the former Time and Tiny owners, as the hot favourite to buy Evesham (CRN 9 July), while Austin refused to comment and Evesham staff remained in the dark.
Evesham was hit hard when the government decided to abolish the Home Computing Initiative (HCI) in last year's Budget. Those close to the company have claimed the system builder never recovered from the loss of HCI.
Following the news today, Evesham intends to re-focus on direct sales of high-end PC systems and consumer electronics and expand on its channel sales operations with retailers. Most of its own brand retail stores are to close as these have not been performing well, said the company.
Austin said in a statement: “We would like to reassure all of our customers that they will continue to receive support from the same Evesham staff and that their existing warranties will continue to be handled as before."
Mohsan, head of PCC Technology, said: “It is our intention to allow Evesham to continue with no involvement from PCC in the day-to-day operations. We expect the brand to develop strongly and will be looking to divest in the medium term.”
He added: “Evesham is an excellent brand which has always offered a level of service which its customers have grown to love. By funding this restructuring, we intend to allow Evesham to continue delivering excellent products and services to its customers, so it’s business as usual.”
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