Centerprise snaps up YOYOTech

System builder acquires brand that placed itself into CVL earlier this month

Centerprise has acquired certain assets of Antech Direct Ltd, including its well-known brand YOYOTech.

As revealed by CRN earlier this month, YOYOTech went into creditors' voluntary liquidation (CVL) due to continued tough market conditions.

The Tottenham Court Road-based high-end PC builder and retailer, which had been in business for over a decade, was inundated with well-wishes from customers on its official Facebook page.

Aggressively-growing Centerprise's chief said the acquisition was a significant step forward for both firms.

Garry Stevens, group chief executive of Centerprise Group, said: "YOYOTech, as a brand, has an excellent reputation across the channel and we are confident that with our backing it has the potential to get bigger and better."

According to the liquidator, YOYOTech's parent company Antech Direct -which had ten full-time staff and 30,000 customers - was floored by intensifying competition from low-cost internet operators. It made its first-ever loss last year.

Owner Charanjit Kohli opted to cease trading on 30 May before a notice to creditors to convene the creditors' meeting to place the company into liquidation was signed on 4 June.

"The company started to experience financial difficulties due to the increase in the number of customers coming into the shop for technical advice and then purchasing the products online for less from competitors," the liquidator said.

"The company was unable to compete with the interent market due to the overheads on the premises and the staff costs."

For its year to 31 December 2012, YOYOTech posted a post-tax loss of £159,000 on sales of £3.61m.

Company creditors were owed a total of £861,000, with Computer 2000 (£105,000), Ingram Micro (£80,000), Micro-P (£59,000), VIP (£44,000) and Beta Distribution (£31,000) among the largest trade creditors.

Stock - which was collected by agents when YOYOTech ceased trading - had a book value of £225,000 although was valued at just £22,500 after retention of title claims from suppliers and a distraint excercised by HMRC were taken into account