Mail-order reseller Tech Direct Europe is understood to be negotiating fresh financial backing after experiencing a number of payment problems, according to sources.
At least one major credit insurer is believed to have cut the reseller's cover limit last week, restricting its ability to trade and fuelling speculation that it is in discussion with a number of interested parties.
One source, that did not want to be named, said: "Basically it is having payment problems, which could mean it is either on the verge of going under or on the verge of being bought."
Another industry watcher said an acquisition proposal was currently being considered by the company. A decision is expected to be made this week, and job losses look likely.
The reseller, which employs about 70 people and has turnover in excess of £30m, is understood to have been hit by the slowdown in corporate IT spending in the first half of the year. Businesses are cutting their IT budgets due to overspending before the millennium.
Tech Direct is also believed to be experiencing difficulties in the implementation of a new IT system, leading to some cancelled orders.
Tech Direct was unavailable for comment.
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