Reseller boss: $260k unpaid bill sunk my business

A northern Sydney IT provider that boasted Coca-Cola, McDonald's and Fitness First among its clients has gone into liquidation.

East West Print and Data shut its doors last month, with liquidator James White of BDO appointed 13 April.

The Australian Taxation Office is the biggest creditor, owed $400,000. Fuji Xerox Australia is $261,536 out of pocket, while DeLage Pty Ltd is owed $113,510.

East West managing director Peter Downing confirmed to CRN that the business had closed, and blamed the collapse on a large corporate customer not paying its bills, combined with constant direct sales pressure from Fuji Xerox.

"From day one, Fuji Xerox tried to go direct. Even trying to get around us by meeting them in other cities," said Downing. 

"The only way for the new [customer CIO] to get out of the deal with us was to stop paying."

CRN contacted the liquidator to verify his claims but did not receive a response. CRN has chosen not to name the client.

A Fuji Xerox Australia spokesperson denied the allegations: "[Fuji Xerox Australia] strongly refutes any accusations of misconduct. We at all times adhere to ethical business practices."

The customer did not respond to CRN's enquiries made to its USA headquarters.

East West Print and Data was located at Balgowlah near the Manly peninsula in Sydney, with print services its main activity. Downing said that Canon used to be its major vendor until about two years ago, when Fuji Xerox took over the role.

The company also performed data management with Hitachi Data Systems as supplier.

Downing is now the managing director of Centron Fuel Technology, manufacturer of a vehicle fuel additive. He told CRN that he "couldn't care less" about the IT channel any more.

"It's a shame, it used to be a good little business… until two major corporations squeezed us out."

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