DIY chain may sell computers

By RICHARD PAMATATAU

Collapsed Hamilton computer maker The PC Company may sign a deal with construction supply company Building Depot to sell low-cost personal computers.

It is understood the Building Depot, which has eight outlets and supplies the DIY and home-renovation market, may be setting up a subsidiary operation to sell low-cost PCs using a "store within the store" concept.

Colin Brown, managing director of The PC Company, refused to comment on which company had ordered more than 200 computers from receiver Kim Thompson. Industry speculation points to a deal with Building Depot.

The PC Company collapsed in September with debts of about $3 million, including $2 million to unsecured creditors, $300,000 to former employees, and $800,000 on its debenture, which was bought from the ANZ Bank by Brown in September.

He said a company registered by him last week - My PC Ltd - was just a "shell company" and in no way connected to "anything happening at the moment".

Brown said it was not going to be used "as such" and he wanted the name reserved for possible future use. That use was not disclosed.

Despite assurances by Brown in September that all machines in for repair would be returned and deposits on new machines would be refunded, some customers have still not got their PCs back.

Brown continues to say the company is doing everything it can to get the machines back to them and that customers can deal with him directly or Kim Thompson.

Thompson is unavailable for comment this week.

When the Herald spoke to him last week, Thompson would not say who the order of PCs was from.

He said he was working to get as much money as possible for stock that was still in the warehouse to pay creditors.

Brown said allegations that his company had been or was continuing to put used and refurbished components into PCs being sold as new were "totally untrue".

"We have sold refurbished PCs, of course, from our website but they were also clearly marked as such."

Speculation is mounting that Brown may set up another retail operation in Hamilton. But he said information that he had leased property in Anglesea St next to a tyre refitters, and down the road from a building owned by Pegasus Electronics - which Brown and his wife Keryn own - was untrue.

It looks likely that former PC Company staff will be left out of pocket; some former members of the management team are owed more than $30,000.

They would not discuss this with the Herald and Brown said they would be paid back some of the money owed.

Another matter raising concerns is missing stock and parts. This was raised in a letter sent by the receiver to several staff which said: "I have been made aware that some staff are in possession of company property. Please be advised that such property is to be returned immediately. Should this not happen, then further action for recovery is likely."

Brown said the police might investigate where some missing stock had gone, but he would not elaborate.