The Channel logo

News

By | Paul Kunert 18th April 2013 10:32

Dell shuts down channel biz Cheriton over unpaid debt

Texan PC baron 'pulled rug from under us' says boss

IT reseller Cheriton Computers has been wound up by US giant Dell over an unpaid five-figure debt.

Alton-based Cheriton - which is a Lenovo Premium Business Partner, Microsoft small-biz specialist and Dell registered dealer - celebrated its ten-year anniversary this month, but it won't be toasting an eleventh.

A winding-up petition lodged by Dell on 20 February was granted by the Royal Courts of Justice this week, and Cheriton was formally wound up.

Speaking to The Channel, Graham Livingstone, Cheriton's managing director, said it had proposed a payment plan but "Dell forced our hand and said we want the money upfront".

"We were not in a position to do that, so Dell pulled the carpet from under us," he said. Livingstone refused to reveal the exact size of the debt but said it was less than £100,000.

"Dell said they would teach us a lesson [for not paying the debt] but I pointed out we had no assets in the business and they wouldn't get anything. They still wound us up."

The firm's ten staff, nearly all of whom are techies, were laid off, Livingston confirmed. He said he plans to remain in the IT industry but will not start up another channel firm.

Cheriton filed abbreviated accounts for the year to March 2012 showing it was owed £200,000 and was in debt to others for the same amount. It had a net asset value of £1,000.

Dell said "unfortunately, we can't comment on our relationship with specific resellers”. ®

alert Send corrections

Opinion

Memristor_wafer

Chris Mellor

Execution warrant close to being signed for Fink's folly
Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world