Axe hangs over European Micro

Second-source distributor facing liquidation

Second-source distributor European Micro is facing liquidation. Its US parent, European Micro Holdings (EMH), said it intends to focus on its American Micro Computer Center business.

European Micro has been struggling to meet loan obligations and its main lender, NatWest, has temporarily frozen its operating accounts. EMH co-chairman Harry Shields has lent European Micro over $1.8m (£1.2m) to repay various loans.

EMH said last week that European Micro "intends to proceed to an orderly liquidation of its business to repay creditors". However, European Micro executives in the UK said this was not the case.

Gary Conner, European Micro sales and purchasing manager, said the firm was to make "positive announcements" to safeguard its future.

"[Co-chairman] John Gallagher and Harry Shields are looking to paint the blackest picture at the moment, so the situation will only improve," he said. "The message from the UK is, watch this space."