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Distributors shocked as Yellow Machine sinks

Distributors shocked as Yellow Machine sinks

Distributors have expressed shock and disappointment after Yellow Machine vendor, Anthology Solutions, announced it was no longer trading. The US company closed its Sydney operation on September 15. It had about 30 local staff.

Country manager, John Robinson, said Anthology had been relying on a third round of venture capital funding, which did not eventuate. Trustees were expected to be appointed in the US to wind-up the company's operations.

The shock closure comes just before the vendor was expected to release entry-level and enterprise versions of Yellow Machine.

"Things were going pretty well here, and even stronger in the US, but it wasn't enough to pay for running the operation and bringing the new products to market," Robinson said. "It's just as well those products weren't released. That would have further complicated matters."

The vendor entered the Australian market in November, appointing Web hosting and direct marketing organisation, Cradle Technologies, as its first distributor. Tecksel, BMS Technology and J Mills Distribution also carried the product.

Tecksel managing director, Leigh Mutimer, said he was shocked and disappointed when he was informed of the closure. The distributor had less than 20 units left in stock.

"It was more disappointment than anything because it was a good reliable product that was gaining momentum," Mutimer said. "It's a bit hard to say for now where we are going to go from here but we will continue to sell the remaining stock."

J Mills managing director, Alan Duncan, also expressed his disappointment regarding the closure. He had been notified by email.

"We had made some sales in WA and we've still got a handful of stock," Duncan said. "We will continue to support the product. I don't think we'll have too many problems from a warranty point of view."

Tecksel, J Mills and BMS will all honour the 12-month warranty on sold units.

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