Powermark has fallen into receivership after a change of management and a new business plan failed to get the struggling reseller back on course and receivers have been appointed.
Initially a mail-order reseller, it left that market in 1997. Powermark's turnover tumbled during 1999, hitting just £14.5m, compared with about £27m during its 1997 and 1998 periods.
Geoffrey Carton Kelly and Graham Bushby of Baker Tilly were appointed receivers of the Hertfordshire VAR last week. A representative for Baker Tilly said the situation was being reviewed but declined to comment further.
The company made a £1.5m loss last year, compared with profit of £100,000 and £855,000 in 1998 and 1997 respectively.
The company's headcount fell from 89 in 1998 to 72 last year.
Last October a new management team was appointed, led by Frank Foxall, formerly vice-president of sales at GE Capital IT Solutions.
Foxall planned to focus the company on the SME market, claiming that larger corporate resellers were competing with global service companies such as Cap Gemini and IBM Global Services.
Two specialist teams were set up, one offering networking kit with vendors Cisco and 3Com, and the other selling software, focusing on Windows 2000 deployment. An insider said: "The business has struggled to change direction from a mail-order company to a VAR. The new management team may have arrived to late to stop the rot."
Powermark was unavailable for comment as Computer Reseller News went to press. A representative said Foxall was away on holiday.
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