Misco UK's performance was singled out for criticism by parent Systemax as it unveiled a "disappointing" set of quarterly numbers.
The New York-listed reseller and retailer also revealed it is planning to centralise more functions from the UK to its new shared services hub in Hungary as it revealed a 5.1 per cent drop in Q2 sales.
Systemax chief executive Richard Leeds branded the performance of its core technology business "unacceptable", adding that it underperformed in several European markets, including the UK, where it operates through the Misco brand.
Global technology product sales fell eight per cent to $685.8m (£444.7m), with Europe down 7.4 per cent.
Sales in the UK, Systemax's largest European market, declined slightly despite a recent investment in sales agents in the country.
"We have implemented a number of initiatives in Europe, specifically investments in sales agents in the UK, which are ramping slower than anticipated," Leeds said on a Q2 conference call, a transcript of which can be found here. "We are currently undertaking actions to improve our sales performance, further drive operating efficiencies and optimise pricing."
Leeds said he was pleased with the early results of its European shared services centre, which cost it $1.1m to start up this quarter.
He added that the board of directors has approved the expansion of the support functions provided by the Hungarian hub, which is being helmed by long-time UK general manager of Misco Sandy Price.
"These additional back-office functions will be transitioned to the facility over the next 18 months and will further improve our operational efficiencies and lower our cost structure," Leeds explained.
In total, Systemax saw net losses almost treble to $6.1m year on year in Q2 on revenue that slid 5.1 per cent to $805.8m.
"Our entire management team is focused on improving our performance and we continue to address the top-line erosion and bottom-line losses in our technology businesses," Leeds said.
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