Spare parts player Ultrasource hits the wall

Manchester-based HP, IBM, Toshiba and Dell partner calls in Begbies Traynor

Mancunian spare parts specialist Ultrasource has informed suppliers it is going into voluntary liquidation after eight years in business.

Founded in 2003, Ultrasource was known to be a significant force in the spare parts space and also stocked notebooks, servers and accessories from vendors including Toshiba, HP Compaq, IBM and Dell.

Suppliers were informed earlier this month that the firm had appointed administrators Begbies Traynor to oversee its liquidation.

A spokesperson for Begbies Traynor confirmed it is working with Ultrasource but declined to give more detail because the firm had not yet been liquidated. A document filed with Companies House on Monday confirms the appointment termination of Ultrasource founder David Claughton.

Suppliers said Ultrasource's demise had left them with little or no bad debts.

Paul Cubbage, managing director of distributor Target Components, said: "They cleared their balance with us at the end of January, so they certainly did things the right way as far as we are concerned."

Graham Nye, managing director of Chiltern IT Parts, said: "It was a bit of a shock as we had been doing business with Ultrasource for many years."

CRN tried to contact Ultrasource but the number of its Monton office was no longer in service.

Paul Sweeney, managing director of Manchester-based VAR ANS Group, claimed the spare parts and break-fix market was a tough place to be right now.

"Warranties are now available from the manufacturers for 3-5 years, which makes it difficult for third-party players to offer them. It is very low margin and the people that are being successful are getting in at the value and managed service end," he said.