VIP offers to help Entatech customers for RMAs and credit

Rival distributor offers assistance to customers, but MD Rich Marsden admits he harbours mixed feelings on Entatech's demise

VIP is offering to help customers of Entatech who are unable to access credit and return faulty stock in the wake of the demise of the distributor's demise.

According to multiple sources, Entatech went out of business at 4pm yesterday after last-gasp efforts to find a buyer failed.

Talking to CRN, VIP managing director Rich Marsden said that VIP will do what it can to support mutual customers.

"We are putting credit facilities in place for any customer that was dual sourcing from VIP and Enta that needs additional support. Without this, they may not be able to transact," he said.

"We are also covering the RMAs [a return merchandise authorisation] for the brands VIP also supplies. My concern for the customers would be where do they return the items, because some of Entatech's vendors don't have secondary distributors. If Ingram, Exertis and Tech Data do the same, the customers will be covered, which is the important thing."

Marsden admitted he had limited sympathy with Entatech's predicament, although was quick to attribute the distributor's current woes to its previous owners.

Former owner, Jason Tsai, was disqualified from being a company director for 13 years last December, for alleged VAD fraud.

"It's a sad situation for the staff, and if VIP can assist any of them in finding work or supporting them, we obviously would," Marsden said. "As for the business, due to what's gone on in the last ten years - the level of VAT fraud - I think it was an impossible task to turn it around, and it probably should have gone three or four years ago. Dave's done his best, but it's not worked out. I'm not sitting here doing the rain dance, but I'm not disappointed in what's happened."