No saviour for IT firm
Wrocław based IT distributor STGroup admitted yesterday that it had not been able to find an investor. The very existence of the company, which is quoted on the Warsaw stock exchange, is now in the hands of its creditors. STG now has PLN100m in outstanding debts and management is expected to suggest restructuring proposals.
The IT distribution market is getting tighter. At the turn of this year TCH Components, Cadena and Tornado 2000 all went bankrupt. None of the current market players consulted wished to comment on the performance of their competitors.
It is very difficult for distributors to restructure as as soon as there are any signs of trouble the manufacturers pull out of agreements and banks pull the plug on credits.
Compaq pulled out of its agreement with STG in the summer and it would appear that IBM is about to do the same.
The problems of the company were made worse by its failed merger with California Computers and its investment in the yoyo.pl portal which has already started bankruptcy proceedings.