Computer buyers caught

Press, 1 December 1988, Page 26

Computer buyers caught

Computer reporter Microcomputer buyers have again been caught by the collapse of a computer firm. This time it is Computer Imports, Ltd, a private company owned largely by the Ellis brothers, and managed by Philip Ellis, which has been put into receivership. Computer Imports distributes the Exzel brand, which it assembles from componentry imported from South-East Asia. It has supplied major orders of personal computers to a number of large companies, Government departments and educational institutions such as

the Christchurch Polytechnic. Computer Imports was the leading pioneer in cutprice clones of the IBM PC from Asia, These gave New Zealand internationally cheap microcomputers, and led to a high level of microcomputer use in the country. The Ellis brothers and other microcomputer firms instituted a scheme where microcomputer buyers have been offered two prices: one when they paid on receiving the machine, and a cheaper price if they put money up in advance. The “up front” money is used to

finance the import of the machine. In a number of cases some of those who paid in advance have been caught in the collapse, losing their money without having received a machine. Some soundly based microcomputer firms have used the scheme without loss to purchasers, and continue to do so, but buyers need to be aware that the cost of the discount is at risk of losing the payment. At least one Christchurch person who had paid Computer Imports in advance must now wait in

line as an unsecured creditor for any money left after the firm’s secured creditors have been paid. The Computer Imports strategy was to cut prices heavily and drive for market share. The receiver, Mr Rod Pardington. of Deloitte, Haskins, and Sells, of Auckland, said the firm’s problem was lack of cash flow. The Christchurch shop, in Kilmore Street near the Town Hall, is still open, but it is believed that the reduced staff are only accepting machines for repair.