Electro-Wide's troubles have a domino effect

Electro-Wide's plunge into administration has led to the liquidation of Customer Engineering, the company that dealt with the systems builder's warranties and support.

As exclusively revealed in PC Dealer (25 February), West-Glamorgan-based systems builder Electro-Wide went into administration at the end of last month, with debts believed to be up £3 million.

It emerged this week that Customer Engineering, which was based at the same address as Electro-Wide, ceased trading on 27 February. The creditors meeting was held on 12 March confirming the company's liquidation. The collapse was seen as a direct knock-on effect from Electro-Wide's fall into administration.

A representative for the local Trading Standards Office stated: 'Electro-Wide's administration has led to a company called Customer Engineering going into receivership. Electro-Wide was its biggest contract and paid Customer Engineering on a monthly basis.' Another trading standards officer revealed it 'was keeping a watchful eye on the situation'.

An answerphone message on the Customer Engineering telephone number stated all activity by both Electro-Wide and Customer Engineering had been suspended.

Callers with further enquiries were being directed to Nationwide support services on a premium rate line.

Nationwide also trades from the old Electro-Wide and Customer Engineering address in West Glamorgan. Nationwide staff refused to reveal the names of its directors, but insisted the company had no connection with Electro-Wide or Customer Engineering.

Gary Stones, partner at Stones Jones, Electro-Wide's administrator, confirmed that Customer Engineering was in liquidation and said he was dealing with the situation because of the close relationship between the companies.

Companies House has yet to receive notice of Customer Engineering's liquidation, despite Stones' claim that the statement of affairs had been filed.