PC Connection, PC Mall Make Bids On Amherst Technologies

Amherst, a 22-year-old $200 million solution provider based in Merrimac, N.H. was slated to formally file for Chapter 7 bankruptcy liquidation today, sources close to the case said.

The last minute offers pit the two companies against solution provider ePlus which said two weeks ago that it had signed an exclusive letter of intent to purchase the operating assets of Amherst for $2 million in cash. Executives at PC Connection and PC Mall were unavailable for comment at press time.

With the assets up for auction, a number of Amherst employees are already attempting to join other competitors, sources said. PC Connection, which may have an advantage in the hunt given its cross town Merrimack, N.H. location, has reportedly already hired some Amherst sales personnel.

The auction comes after a U.S. Bankruptcy Court judge earlier this week approved a motion that has converted the Amherst Technologies July Chapter 11 bankruptcy filing into a Chapter 7 liquidation and appointed a trustee to oversee the case.

Judge J. Michael Deasey of the US Bankruptcy Court for the District of New Hampshire in Manchester approved a motion from IBM Credit to lift a stay, allowing IBM Credit to seize collateral, securing its $32.7 million debtor in possession loan.

ePlus would not comment on the Amherst situation. But an ePlus source has said the company is committed to purchasing Amherst's operating assets and retaining key personnel.

Furthermore, the source pledged there would be no disruption to any customer orders or business relationships. The ePlus bid follows similar deals that the solution provider has successfully completed, buying Manchester Technologies in 2004 and Elcom in 2002.In those cases, ePlus retained all of the customers and branch locations.