Resellers lock horns again

Specialist Computer Holdings and Compel row gathers pace

A long-running spat between corporate resellers Specialist Computer Holdings (SCH) and Compel over the sale of desktop business Compelsource took a further turn last week.

The sale took place two years ago (CRN, 7 March 2001) for £14.3m, with a further £2m retained by SCH to be paid to Compel after 24 months, subject to claims by SCH.

In April 2001, SCH sought a price reduction, which was rejected by Compel and referred to an independent accountant who deducted £864,000 from the £2m retained by SCH, leaving a balance of just over £1.1m.

But on the last day of the 24 months, SCH wrote to Compel with warranty and indemnity claims amounting to about £3.1m, alleging it was entitled to retain the balance of the retention sum and claiming a further £2m.

A Compel representative said: "The directors are confident that the current claim by SCH, with very minor exceptions, is entirely without merit. Compel will take appropriate action to defend SCH's claims."

SCH was unavailable for comment.