Ethix seeks help following loss of vendor business

Derbyshire-based networking distributor Ethix is consulting an insolvency practice in an attempt to avoid going into receivership.

The company?s financial difficulties were compounded two weeks ago by three vendors withdrawing their business.

Richard Pitt, general manager of intranet software firm Netmanage, said he had gone to Ethix? premises to collect stock after speaking to the distributor?s financial advisers.

?Ethix did good business for us two years ago, but has not been performing recently. We were concerned that it might go into receivership and did not want to be exposed, so we terminated the relationship.?

Farallon and Microplex are also believed to have ended their partnership with Ethix in the same week.

Ethix MD Phil Smith said he was meeting with the insolvency practice this week. ?Our advisors seem to think there are a number of things we can do to avoid receivership.?