3Cnet Informatics closes its doors after checks bounce

3Cnet Informatics Inc (旭曜電通), a computer and peripherals chain, made an abrupt decision to temporarily shut down its 10 outlets yesterday, one day after it was rumored to have presented NT$10 million in checks on Tuesday, that all bounced.

Rush

On Tuesday night, a few small-scale suppliers rushed to its several stores trying to take away the company's in-house supplies that was technically still their property.

This has led to the com-pany's decision to close down 10 locations -- including those in the famed computer distribution channels such as Kuanghwa Market (光華商場) and NOVA -- for taking inventory till today to avoid irrational actions by suppliers to protect their interests.

Lower Sales

The company said the cause behind its bouncing checks is that its 29 stores suffered lower sales than expected during the Lunar New Year holiday period and suppliers refused to extend usance.

Company chairman Chang Chao-shen (張朝深) stressed that 3Cnet Informatics will never run away although it is now facing economic difficulties.

Suppliers

Major suppliers, including Synnex Technology International Corp (聯強), Genuine C&C Inc (捷元) and Xander International Corp (建達國際), have expressed their support to continue supplying products so that the chain store can continue its normal business.

3Cnet Informatics was founded in 2001 by an investment company operated by Cher Wang (王雪紅), chairwoman of VIA Technologies Inc (威盛電子). Its major shareholders include chipset maker VIA Technologies and First International Computer Group (大眾集團).

VIA Technologies yesterday said it had nothing to do with this incident and that the situation does not affect VIA Technologies' operations and financial position.