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NEWSFLASH: Edge Technology collapses under the strain
- — 08 June, 2000 17:10
Edge Technology's North American branches have also folded as Johnson Wang's troubled company continues to crack at the seams. Wang's group consists of sister companies eisa and Edge Technology, a white box assembler and distributor renowned for its KTX brand.
A sales representative confirmed that Edge Technology closed its Townsville office yesterday, with all four staff retrenched. The staff will spend Thursday and Friday shipping stock back to Sydney.
"We closed our doors yesterday and we finish up on Friday," he said. "We were just picking the branch up from a bit of bad management and then this happens. They (Edge management) don't tell us nothing."
Unconfirmed reports suggest Edge Melbourne has closed, with the company yesterday not answering the phone. Edge's Queensland office has also reportedly closed. A spokesperson at the office said: "We really can't comment."
However, according to an industry source intimate with the company, Queensland staff have started to sell off stock ex-tax for cash in an effort to clear the decks before the stock is seized yesterday.
The source reports Edge appointed receivers for the company yesterday, while its Alexandria office has been sold off to Dick Smith Electronics.
Edge is also planning to ship any remaining stock in Australia to its office in New Zealand. According to the source, Edge has suffered the cruel blow as a result of Eisa's troubles. Wang apparently used Eisa, and its previously healthy share price, to support the company.
Meanwhile, a spokesperson at Edge Technology's global headquarters also confirmed that Edge North America has closed, while an Australian Reseller News source said the move actually took place four weeks ago.
ARN also attempted to contact every US branch yesterday morning without success. Telstra reports the number for Edge's North American head office in Dallas was no longer connected, and there was no answer at its Toronto office at 4:30pm local time.
When repeatedly approached, Edge Technology executives refused to comment or return our calls.
Mark Jones is the editor of Australian Reseller News.