Reseller goes bust leaving debts of 11 million dirhams

Another reseller has gone out of business, leaving distributors facing losses of around 11 million dirhams

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By  Mark Sutton Published  October 13, 2002

Another reseller has gone bust, leaving local distributors carrying the burden of unpaid bills amounting to millions of dirhams. Bawarai Trading, a Dubai-based reseller has ceased trading, owing distribution companies in the region approximately eleven million dirhams ($3.4 million).

Distributors first became aware of problems with Bawarai Trading when the company began selling stock at prices up to 50% cheaper than competitors. Goods had either been acquired using distributors own credit lines or by post-dated cheques. The company bounced several cheques, which caused distributors to try to contact the director, believed to be a Pakistani national, but to no avail. It is believed that the director may have left the country.

Bawarai Trading is also reported to have booked a stand at this year’s Computer Shopper, apparently to give the appearance that the company intended to carry on trading and as an attempt to secure extended credit lines to allow for greater volumes over the show.

Tech Data was one of the companies that received a cheque payment, for 200,000 dhs from Bawarai Trading, which subsequently was rejected. The distributor then attempted to contact the company, but to no avail, and has subsequently filed a complaint with the Dubai Police Department, a company spokesperson said.

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