HP is in a legal dispute with defunct independent distributor DP Data Systems, the latter has confirmed in its freshly filed annual accounts.
DP Data Systems ceased trading in February this year and the management team behind it have since formed a new authorised distributor, citing the difficulties of operating in that sector.
Annual accounts for the Manchester trader filed this week disclose that HP filed a claim against the firm for alleged trademark infringement on 21 May 2015. The outcome of the lawsuit remains uncertain, DP Data Systems said in the report.
The year ending 31 May 2015 was "extremely challenging", DP Data said, citing commoditisation in the hardware market and the "rapid increase" in cloud.
But the accounts also blamed an 11 per cent fall in sales in the year to £46.9m on "severe curtailment of the EEA-based supply chain". Losses hit £1.9m.
Referencing why the directors took the decision to cease trading in February, director Keith Richardson said: "As a consequence [of the lawsuit], the directors have undertaken a strategic review of the business and have concluded that the importation and sale of parallel goods sourced within the EEA [European Economic Area] is no longer a feasible business model."
When contacted by CRN, DP Data Systems said: "This is a regular commercial dispute that we are looking to resolve as soon as possible."
Speaking to CRN earlier this month managing director Steve McKeever said the closure was driven by a number of factors, most notably commercial changes in the market.
"It was becoming very commoditised and there was very little value you could add to your customer other than trying to buy products cheaply and sell them at a low price," he said at the time. "To me it was not a long-term, sustainable business."
Legal proceedings were started before HP split into two entities last year. CRN contacted HP Inc and Hewlett Packard Enterprise for comment but neither had responded at the time of publication.
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