Samsung demands payment from Tiny

Exclusive Manufacturer issues writ for #400,000 monitor bill.

Samsung has issued a writ against Tiny Computers in an attempt to. recover an outstanding debt of more than #400,000 from a collapsed deal that was worth #31 million.

In the writ, seen by PC Dealer, Samsung is calling in a debt worth $698,630.93 and #6,809.23 plus interest. Between January 1996 and April this year, it says Samsung supplied Tiny with nearly 250,000 monitors. The agreement was part of the #31 million deal met by Samsung's trading division, Xiod UK.

The writ claimed: 'In breach of contract, Tiny ... has failed to pay invoices within the 30-day period allowed and which were due in May and July.'

One observer suggested the UK manufacturer was playing off the troubled Korean chaebols against one another for the cheapest monitor deal, but Samsung had become fed up with the pricing demands.

A Tiny representative revealed that the end of the Samsung contract had resulted in the retailer dual-sourcing monitors from Korean suppliers Hyundai and Daewoo.

A Daewoo representative confirmed that the company hoped to replace Hyundai altogether. 'We went in aggressively to win the business. We're increasing production and will be producing Tiny-badged monitors in the New Year.

We hope to be the number one supplier,' he said.

Industry watchers suggested Tiny will settle quietly out of court. George O'Connor, analyst at Granville Research, commented: 'Tiny had better have a good reason not to pay the bill. There are a number of potential issues. It could be quality, or Samsung sending a signal to others that it is serious.'

Samsung declined to comment, while Tiny refused to comment.

Tiny has launched into the US, backed by a $1 million campaign, and opened showrooms in Hong Kong and China (PC Dealer, 24 June). The stores opened on 26 September in Seattle.

A representative from Baker and McKenzie - handling Samsung's case - stated: 'Samsung sees it as a private commercial matter and as such cannot comment on it. We are waiting from a response from Tiny.'