MB Technologies, SA's largest computer distributor, is not to blame for Eclipse Networks' demise, it says.
Staff from Eclipse Networks, who have not received their March salaries, have complained via ITWeb's feedback facility that the company's doors have been closed because of MB Technologies (MBT), and its operating company, Tarsus.
Some of the comments allege MBT had a hand in closing down the company, and stands to benefit from its failure.
Eclipse closed its doors last week after it was placed under judicial management by CEO Richard Rix on 19 March, leaving almost 300 employees facing the axe. Deon Botha, the judicial manager from Corporate Liquidators, is seeking a solution to the company's woes.
MBT CEO Glenn Fullerton says mismanagement led to Eclipse's closure, not MBT's refusal, as a supplier, to bail it out.
Fullerton explains the company has been in difficulty for about two years as it grew too fast and took on too many product lines. He says MBT had extended it a long line of credit, but is now owed millions by the company, some of which has been owed for years.
Eclipse is believed to owe creditors more than R50 million, the largest share of which is owed to MBT. “We need to be paid; we cannot not be paid any longer,” says Fullerton.
security for other purchases. Credit Guarantee pulled the plug in March when it told the industry that it would no longer guarantee Eclipse's orders.
MBT is not prepared to pay out millions to cover salaries and operating costs, says Fullerton. He explains that to do so would be negligent as he has a duty to protect the financial interests of MBT, not Eclipse. “It's not our job as providers of goods to this company to restructure its balance sheet.”
Fullerton says MBT supported Eclipse “beyond the call of duty,” and in some instances overstepped its guaranteed limits after asking Eclipse for security to cover orders.
In addition, when it became clear that Eclipse was heading for trouble, MBT tried to aid the company by suggesting various solutions, says Fullerton.
MBT withdrew as a supplier to the company earlier this year when it became obvious it would be reckless to extend it any more credit. However, adds Fullerton, MBT requested that Eclipse provide it with a feasible business plan, in which case it would consider reopening lines of finance.
Eclipse never came back to MBT with a business plan, instead requesting that Eclipse be placed under judicial management, claims Fullerton.
Subsequently, the judicial manager asked MBT to bail Eclipse out, a notion Fullerton says is “completely ridiculous”.
Fullerton says the company will consider supplying Eclipse again if a reasonable rescue plan is presented to creditors. He says MBT does not want to see people becoming unemployed and agonised over its decision to stop supplying the company.
“This is not a decision that has been taken lightly, it has been agonised over... It's not in our interests as a group to see job losses in this industry,” he says.
Rix was not available to comment this morning as his cellphone seems to have been terminated on the network. He has not responded to previous messages, or an e-mailed request for comment.
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