OCW in turmoil as contract falls through

Olivetti Computers Worldwide's (OCW) UK operation is in disarray following its failure to secure a supply deal with its Italian partners.

OCW was meant to have finalised a deal by the end of June to be supplied by Olivetti EuroComputers, the Italian firm that was salvaged after it went into bankruptcy two months ago.

The inventory of the UK operation and its partners has been under threat since production was suspended at OCW's former Italian arm, OP Computers.

The unit plunged into bankruptcy after court protection was removed and was eventually bought out by management, which changed the name to Olivetti EuroComputers (PC Dealer, 19 May).

The turmoil coincided with the sudden departure of Ian Davidson, UK marketing manager at OCW, who left the vendor on 30 June.

Prior to his departure, Davidson stated 'other suppliers were being looked at', when it was put to him that a deal with EuroComputers looked shaky.

He said Edward Gottesman, proprietor of OCW's holding firm Piedmont International and OCW units outside of Italy, had 'given his commitment to OCW as a going concern'.

But one source said co-operation was unlikely as Gottesman was seen as responsible by EuroComputers for the old firm's demise.

Olivetti was unavailable to comment on the matter.