LONDON Around 1500 people employed by the group that made and sold the Tiny PCs and other computer products have been made redundant as the Lancashire-based company has been placed in to administration.
Andrew Hosking, Martin Ellis and Les Ross of Grant Thornton UK LLP have been appointed as joint administrators to Granville Technology Group Limited and certain of its subsidiaries, including Granville Computer Systems Limited (which formerly traded as Granville Computers and Granville Distribution).
The Group is a leading UK assembler and retailer of personal computers and peripheral products and operated under the 'Tiny' and 'The Computer Shop' brands. Based in Burnley, Lancashire, the Group employs some 1,600 people and operates a network of 80 retail stores nationwide.
Due to the scale of the losses the business has suffered during the current year and the competitive pressures on the sector which have led to the eradication of margins on sales, the joint administrators have decided not to attempt to trade the business as a going concern. Consequently the decision has been taken to make approximately 1,500 of the workforce redundant. These staff were based at the company’s head offices at Burnley and in its nationwide retail operations.
According to the Group last financial accounts, for the year ended June 30, 2003, the Group reported a pre-tax profit of £2.5 million on a turnover of £207 million. Since that time no financial accounts have been filed, however, management accounts demonstrate losses of between £1million and £2million per month since January 2005.
The joint administrators have set up a dedicated help line to assist customers and creditors, including those customers who have recently made purchases but have not yet received their goods, on 0870 381 7097.