Kelway set for Elcom revival
Reseller sets up Elcom ITG Ltd to resurrect fallen brand
Corporate reseller Kelway has pledged to “re-energise” the Elcom brand after buying the assets of its fallen rival from administration last week.
Phil Doye, chief executive at Kelway, told CRN Elcom would be run as a separate unit and, contrary to channel speculation, claimed there were no plans to lay off any of its 80 staff at the present time.
“People will see a re-awakening of the Elcom brand,” he said. “It had a questionable management buyout last year, had too much debt and had received insufficient investment in its systems. We want to invest in its brand name as we believe it is well respected, has good sales people and good customers.”
Doye said the fact that Kelway had set up a new firm, Elcom ITG Ltd, to buy the assets, signalled its confidence in the brand.
“We want to get to a point where we’re considered in the same breath as Computacenter, SCC and Insight,” he added. “If we can get this acquisition right, we will prove our credibility and that will allow us to make further acquisitions.”
He said the purchase would bolster mid-market specialist Kelway’s enterprise credentials.
Meanwhile, it seems unlikely creditors will claw back the debts Elcom was carrying when it folded.
Nitin Joshi, founder of advisory service ChannelMoney, said: “Elcom’s creditors are substantial, but the prospect of them receiving any money back is next to zero.”
Eddie Pacey, director of credit at distributor Bell Micro, said: “We are a creditor and we don’t expect to see anything out of it. But we’re quite happy to trade with the new business, Elcom ITG, because we’re confident of Kelway and its ability to build on the Elcom brand.”