CEO says he wants to do the deal quickly, take on Arrow staffers
Restore Technology CEO Charles Bligh says his IT asset disposal and recycling company has approached Arrow about buying its doomed ITAD business, according to CRN UK.
The Lowdown: Bligh says Restore contacted Arrow as soon as the distributor announced the shutdown of its ITAD units last month. Bligh told CRN UK that the response was tepid and that he hadn’t heard anything definitive on the matter since the offer was made.
The Details: “I don’t know whether they want to sell it or shut it down,” Bligh told the UK-based channel publication. “We approached them and they just said, ‘Thanks for the interest,’ and that they would make sure to keep us in the know.
“We’re interested in most of the unit at this point in time,” Bligh said. “We believe their business is about [$24 million] in revenue, and we’re interested in helping them help their customers find a solution.
“I would encourage Arrow not to take too long, given the fact that their staff are going elsewhere,” the Restore CEO added. “I’m interested in buying it as a going concern and would be interested in taking people on.”
Background: After expanding mightily into ITAD over the past decade, Arrow Electronics in July announced the decision to shut down all of its asset disposition business, saying the unit wasn’t meeting financial expectations.
The move targets end-of-life services for personal computers and mobile devices, as well as enterprise ITAD and data center decommissioning services, company officials confirmed to Channelnomics.
Arrow CEO and President Mike Long later explained the distributor’s financial reasoning for scrapping the ITAD units, saying the complex matter of reselling old gear and sharing revenue with users, known as “clawback,” became increasingly unprofitable over the past decade.