Black Diamond Technologies (BDT) is set to close its electronics division, citing poor conditions for its OEM (original equipment manufacturer) business.
In an email obtained by Reseller News, sent to dealers in mid-January by BDT managing director Ken Lilley, the company says the division will close on 31 March this year.
“The OEM business, which has been marginal for some time, is now unsustainable at the current trading margins, especially with demand faltering. It is our view that the market has now shrunk to the point whereby rationalisation of distribution will be required in order for ANY supplier to remain profitable,” the email reads.
BDT’s board decided its resources were best invested in its Mitsubishi Electric businesses, which remained strong, Lilley added in the correspondence.
BDT was founded in 1981, changing its name from Melco New Zealand in 2002. Along with its computer and electronics distribution, it distributes for Mitsubishi Electric, and Black Diamond audiovisual products.
Among its IT brands are Microsoft, Thermaltake, Gigabyte, LG, Intel and AMD, according to its website. BTG also runs a service and support department.
In the email, the company says it will work with dealers to find other suppliers for the products it stocked, with support given and warranties honoured for any products bought prior to the closure.
BDT’s website says it has 75 staff and three offices in the main centres.
In the email Lilley says redundancy will be inevitable for some of the electronics division employees, and asks dealers who need “experienced, talented staff” to contact him.
News of the closure, and reaction, has circulated on local IT forums in the past few days.
Reseller News has not yet been able to contact BDT representatives for comment.