Audiovisual (AV) specialist Canford Audio is set to shut down its distributor sister company Ash Distribution, claiming the operation "no longer fits within the core business strategy of the business".
In a note on the Ash Distribution website, CEO Iain Elliott said that Ash will shut down at the end of February, with staff and resources being transferred to Canford Audio.
The main Canford business - based in Washington, Tyne and Wear - specialises in AV, with Ash focusing on the distribution of components, networking gear and PCs.
The shift in strategy will give Canford "a greater focus on growing our core business in the broadcast and audiovisual marketplaces", Elliott added.
In its most recent full accounts for the year ending 31 October 2016, Canford reported a revenue of £15.3m, up 6.3 per cent from the previous year.
While not breaking out specific figures for Ash, the report said the distribution arm saw its revenue jump 9.9 per cent. Gross profit for the whole business was up marginally, to £4.3m.
Canford also said it was shifting its strategy to focus on the manufacturing of its own products, rather than reselling products from vendors. Over the course of the year, just under 20 per cent of sales came from the firm's own products.
All Ash customers will see their account facilities, including credit lines, transferred to the main Canford business, Elliott added.
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