Anglo Corporation sunk by retail fiasco

Poor Christmas trading and over-expansion lead to collapse of retail channel conglomerate

Anglo Corporation has crashed with debts of #5 million. Security guards and crying staff stood around outside the Woking-based group after the administrator, Coopers & Lybrand, was called in on Friday.

The collapse of the channel conglomerate, which included distributor SDL, manufacturer Tecno Plus and retail arm Silica, shocked suppliers. Creditors include IBM, reportedly stung for #1 million, Hyundai and distributors Centresoft and GEM.

The future of the remaining subsidiary, corporate reseller Anglo Technology Group (ATG), which operates out of the same building, remains unclear.

Cuts among the 300 staff have already started, according to one source. Two directors, including David Gosling, son of National Car Parks owner Sir Donald Gosling, are understood to have been made redundant on Monday.

Although Anglo was unprofitable, suppliers thought it was financially secure as Gosling was the son of one of the richest men in the UK. One creditor was dumbfounded. ?We thought Sir Donald Gosling would never let it go under but he?s taken his decision and that?s it ? he?s a businessman after all.?

Coopers & Lybrand said several parties have made bids for parts or all of Anglo Corporation. It blamed the group?s collapse on poor trading, particularly at Christmas.

One industry source said: ?They lashed out on Escom sites and underestimated the costs of kitting them out. December and January were bad, so they had all this unsold kit and no dosh.?

Anglo entered retail in November 1995 when it bought SDL and Silica from Prodis. It bought Tecno Plus from Leisuresoft Holdings, after Leisuresoft fell into administration, for #3 million in May last year.

Anglo Corporation turned in a pre-tax loss of #590,000 on turnover of #16.9 million for the year ended June 1996.