FAR from performing an apparent vanishing act, Go Direct was closed down in an orderly manner, leaving no unpaid debts, says the owner of the defunct Christchurch distributor.
In an email to Reseller News, Mark Slattery says although Go Direct started as a distributor of computer goods, the objective was to ultimately distribute electronic goods in general.
However, he says the reality of the market revealed that the return on shareholders’ equity was less than optimal, and it was decided that the company should close.
“This resulted in an orderly process of settling usual creditor accounts and attending to standard legal requirements to close down the operation,” he says.
Go Direct supplied Daewoo monitors and its closure raised concerns over warranty support for the products.
Confirming previous reports in Reseller News, Slattery says Go Direct made arrangements with national electronics servicing chain Tisco to ensure continued support for the monitors.
Tisco holds an extensive range of spare parts, which are available at no charge to Daewoo monitor owners, although it is unable to provide free labour for repairs, says Slattery.
“The management of Go Direct deeply regrets the inconvenience and added financial burden that this placed on resellers and end-users,” he says.
Discussions are continuing between Go Direct, Tisco and Daewoo in order to provide an ongoing supply of key spare parts, he adds.
However, Bryan Edwards, owner of Tisco Christchurch, which took on Go Direct’s supply of spare parts, says there has been little headway in attempts to secure such a deal.
“After many chases, we have had only one response from Daewoo saying they are reviewing it, but they have not come back to us since,” says Edwards.
Edwards confirms the company still has a good supply of the most common parts.
But at least one reseller, who does not want to be named, says the parts he needs for a failed machine are not available from Tisco and questions whether any other resellers are having similar problems.
The reseller fears he will have no option but to repair the faulty machine at his own cost — to not do so would ruin his company’s reputation in a very small market.
He has concerns over the impact on his business if any more of the monitors fail.
Tisco’s Edwards acknowledges customers may find it hard to locate less common parts for the monitors in New Zealand.
Meanwhile, Slattery confirms he has relocated to China, saying he is now director of business development for Actus Global Holdings, based in Shenzhen.
Slattery still owns three companies registered in New Zealand: Pico Productions, Bigbox and Eurasia Trading, but says these are effectively shell companies and are not currently in operation.