CompuAdd Computer Corp, once one of the world’s largest personal computer makers, is liquidating after 14 years. Austin, Texas-based CompuAdd grew into a $500m company during the early 1990s selling personal computers direct. Its laid the seeds of its downfall when it decided to augment its mail order business with several hundred retail outlets. As both rent and competition in the personal computer market escalated the extra overheads coinsided with faltering sales and in early 1993 it filed for Chapter 11 bankruptcy protection. The UK arm initiated a management buy-out, finally completed last year. CompuAdd Computer Group Ltd has since established independent distribution channels and traded independently of its former US parent company. It is currently finalising figures with accountants, but said both turnover and profits should show a healthy rise. Managing director of the Bristol, Avon company Martin Vincent yesterday described the situation in the US as a very sorry state of affairs. Philadelphia investment partnership Dimeling, Schreiber & Park, purchased the company in October 1994, but CompuAdd nev er managed to regain its former market position. When an audit reportedly revealed questionable fin ancial practices last week CompuAdd fired a high rank ing corporate officer, but with no-one even picking up the telephone in Austin to comment, it appears to be a case of too little, too late. The firm is now run ning on a skeleton staff. The bank has foreclosed on debts, putting 300 people out of work. It hasn’t given up hope of a last- minute reprieve, Vincent said, but sadly it’s all looking rather doubtful.
