Exertis UK has told staff it wants to sell its Supplies and AV arms as part of efforts to ‘rightsize’ the business.
The distribution giant stunned the industry at the start of December when it put all (or nearly all) of its circa 1,200 staff at risk of redundancy, as revealed by IT Channel Oxygen.
A week later, it presented a proposal to cut headcount to around 130. The final number may go up or down and can only be confirmed at the end of the 45-day consultation process.
The figures cited in our original reports have since been covered by the BBC, and highlighted by Basingstoke MP Luke Murphy.
The week before Christmas, staff were informed via employee representatives of plans to sell its Supplies and AV businesses, multiple employees have told us.
According to sources familiar with the matter, new owner AURELIUS is looking to save “viable” parts of the business. It is then a question of determining whether they are better off part of its business, or that of a new owner.
A number of staff told us the 130 figure has now been upwardly revised (to as high as 170). But we understand this number is highly informal and is liable to go up or down as events progress.
Although a successful sale of Supplies and AV would safeguard jobs in these businesses, employees and suppliers we spoke gave the news a mixed reception.
“Those staff who sit in AV and Supplies would go with the company if sold – and the rest of us would just be hung out to dry,” one employee said.
“It was relayed to us through the consultation reps – as has all the information. The staff that are also going through consultation are being relied on to pass messages on.”
“Tone deaf” CES decision
One vendor source who contacted us this week said they had not been paid by Exertis UK since the change of ownership, meanwhile.
“Staff were told the other week as part of the consultation that AV and Supplies business will close unless sold. But the main question – will a business actually exist if brands are not being paid? – is still to be answered,” they said.
The vendor source also questioned Exertis UK’s apparent plans to send a small delegation to CES in Las Vegas next month.
Exertis UK may legitimately point out that travel and accommodation for the event are booked months in advance.
But the source characterised the move as “tone deaf”.
“We have declined to meet with Exertis in CES as… brands should be paid ahead of expensive travel and corporate hospitality,” they said.
“There is not a single meeting in CES that cannot be held in the UK especially when we are all speaking to Exertis daily.”
It should be stressed that the rightsizing only impacts the Exertis UK Business & Consumer and Supplies businesses, with the Irish business (and the brands under its tutelage such as Hypertec), unaffected.
“Deeply concerning”
All the above businesses were sold by DCC Group to international private-equity firm AURELIUS in July for a headline enterprise value of £100m. The closure of the deal was announced at the start of November.
DCC Technology’s remaining distribution businesses (which include Hammer, as well as its North American AV brands) have since rebranded as ‘Nexora’.
Exertis UK ranked fourth in IT Channel Oxygen’s recent 50 Must-Know UK IT Distributors and Marketplaces, with 2025 revenue of £1.59bn. According to multiple sources, it has been beset with credit insurance difficulties since the AURELIUS sale was announced.
Basingstoke MP Luke Murphy earlier this month branded the situation at Exertis UK “deeply concerning” (see more here).
He said he has been in direct contact with affected employees and has also coordinated with fellow MPs whose constituencies include Exertis UK sites. The business has offices in not only Basingstoke but also Burnley, Harlow and Elland.
“I am engaging directly with Exertis, with ministers, and with other MPs to make sure the full weight of government support is to make sure the full range of government support is put in place and that the company meets both its legal and moral responsibilities to its workforce,” he stated.
Exertis UK could not be reached for comment, while AURELIUS declined to comment.
Doug Woodburn is editor of IT Channel Oxygen
