Jess Thompson-Hughes has vowed to build a £10m co-op reseller after React Technologies went into administration.
The networking VAR employed receivers Leonard Curtis earlier this month to place React Technologies into administration, and is now trading as React Enterprises. Former React Technology directors Nick Walters and Steve Hook have also left the business.
Speaking to ChannelWeb, Thompson-Hughes (pictured), who owns 100 per cent of React Enterprises, explained that the decision was not taken lightly.
“We had nine years of just drifting along with React Technologies, and in the end it came down to difficult trading conditions which created a lot of debt, and a poor internal set up.
“In the end I decided to just stop shuffling debt around and close the company down, while at the same time creating the vision and strategy for React Enterprises,” he said.
Two months ago, deputy prime minister Nick Clegg outlined plans to increase the number of employee-owned firms and Thompson-Hughes said React Enterprises would operate along these lines.
“The plan is to build up a company that will be sold in five years, but instead of shareholders the staff have a percentage of ownership, so when we hit monthly targets, they all get a percentage on top of their wages," Thompson-Hughes said.
React Enterprises currently employs 19 staff, with room to grow, he said.
“The other important thing is that we have come to an agreement with all the manufacturers that we worked with, and have made arrangements with the suppliers that we want to take forward, so everybody concerned is happy,” he added. “For us this is nothing but a positive move, there is no Board, just a very flat system, with everyone aligned to our four core pillars - SaaS, cloud, innovative solutions and services.”
In total there are three trading companies under the React brand – React Enterprises, React Innovative Solutions and holding company React Global.
Thompson-Hughes said he plans to continue to create new companies under the React umbrella.
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