Direct-sales PC vendor hits wall after Oz parent

Fairstar Computers is the latest local PC assembler to collapse after its parent company in Australia was placed in receivership. Fairstar began trading a year ago, using a direct-sales model coupled with television advertising. Despite selling around 700 systems to over 500 customers, Fairstar was forced to close its doors because of the collapse of its Australian parent company.

Fairstar Computers is the latest local PC assembler to collapse after its parent company in Australia was placed in receivership.

"Basically, in a week we will cease to exist," says New Zealand manager Steve Hurley.

Fairstar Computers began trading a year ago, using a direct-sales model coupled with television advertising. Despite selling around 700 systems to over 500 customers, Fairstar was forced to close its doors because of the collapse of its Australian parent company. "We couldn't convince the receivers to treat us as a separate company so we've been given a few days to wrap things up," says Hurley.

Fairstar customers will be sent a letter explaining the closure, says Hurley, who is very disappointed with the decision of the Australian receivers.

Fairstar Computers used TV advertising to create a nationwide customer base. Hurley was convinced that local buyers would feel more comfortable buying nationally-advertised brands and hoped to avoid the trap of being labelled a small-scale local distributor.

Fairstar employed seven full-time staff, all of whom have found jobs, says Hurley.

Hurley says he will try to find another company willing to continue with the TV-marketing of PCs, a formula he believes will be successful.

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