Escom bankrupty (1) - firm "got sums drastically wrong"

The UK PC industry was displaying precious little sympathy for Escom's plight today, rushing to condemn the stricken German company for rash pricing and overly aggressive marketing.
Written by Martin Veitch, Contributor

Keith Warburton, executive director of trade body the Personal Computer Association, said he was "absolutely livid" at Escom's conduct in this country.

"They came and jumped about for two or three years and took margin out of the market," Warburton said. "They convinced users they could get a real computer for under £600; I can't think of any positive effect they've had except for [upgrade sellers]. I think they were trying to buy market share but they got their sums drastically wrong. The message is: buyer beware, you don't get owt for nowt."

Escom UK Receivers Nick Dargan and Ralph Preece of Deloitte & Touche said on Monday that they were optimistic they could find a buyer for the business and were allowing the company to continue trading in the meantime. "It is unfortunate that the demise of the German holding company has resulted in the current financial difficulties in the UK. However, we have already had a number of serious enquiries for the business and are hopeful of securing a sale."

Deloitte & Touche can be contacted on 0171-936 3000

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