Layer 7 opts for liquidation

Difficult market conditions blamed as networking distributor goes under

Networking distributor Layer 7 has gone into voluntary liquidation after succumbing to difficult market conditions.

The Wigan-based firm, officially described as a networking computer product broker, has already ceased trading. All staff have been made redundant.

Insolvency specialist PKF has been appointed liquidator and will be hosting a meeting of creditors on 7 February.

Nitin Joshi, partner at PKF, told CRN that Layer 7 was a "victim of climate changes in the networking market".

"Suppliers have hardened their position in recent months, and price movements in the broker market have been violent," he said.

"It is sad, but the firm had a high quality of staff who should find it easy to secure gainful employment elsewhere."

James Governor, principal analyst at RedMonk, said: "It is totally unsurprising. Networking is an area of over-capacity and this is not going to be the last company in the sector to run into financial difficulties."

No one from Layer 7 was available for comment.