Telstra distributor ICT123 has ceased trading and is blaming dealer fraud for its closure.
ICT123’s website claims it supplies over 1000 Telstra dealers and the closure was revealed in an email sent to the dealers last week.
“It is with deep regret, that we hereby advise ICT123 Pty Ltd has ceased trading,” the email states. “Unfortunately, after more than seven years building our business, a series of events including the fraudulent actions of one isolated dealer has put our business in jeopardy.”
The email advises ICT123’s board is “in discussions” with legal advisers and will provide a further update within 48 hours.
“Clearly, many unanswered questions remain, however we ask for your patience and understanding in this difficult time,” the email states.
ICT123 has closed its dealer support centre and is not processing any further connections.
The Australian Securities and Investments Commission website does not have a record of the appointment of any administrators or receivers to ICT123 at this stage.
Wayne Pryor, managing director of Telstra dealer Waykat Services, was a customer of ICT123.
He told SmartCompany he was surprised to receive the email from ICT123, which had purported to be the biggest Telstra dealer and wholesaler in Australia.
Pryor says the closure will have minimal impact on Waykat’s business as he undertook “risk management” prior to ICT123’s announcement.
“We always have a backup to every supplier and we tend to spread ourselves around so if something goes south we always have someone to turn to,” he says.
SmartCompany contacted ICT123 and its legal advisers but did not receive a response prior to publication.
Telstra also failed to respond to a request for comment.