Bank troubles force Time to close all 78 shops

Time Computers closed all of its 78 Computer Shop stores on Monday, amid fierce speculation about the future of the company.

As staff talked of closed production lines and unfilled orders, and complained of being kept in the dark over company plans, managers tried to put a brave face on the situation, insisting that the store closures were only a temporary measure.

Richard Harris, the head of human resources at Time Computers' parent company, Granville Technology Group, said: "We intend to carry on in business. We have had to close the stores because of issues with the bank."

Last Friday, the company confirmed that HSBC has withdrawn credit handling facilities after the company defaulted on a loan. This has forced the closure of the stores, as they can't process credit card payments.

Harris maintained that Granville was working with the bank to sort out the problem. These issues have meant employees have been paid late two months running.

Harris said the main parts of the mail order business were "operating normally" but added that some production lines had been closed down on a temporary basis. He insisted there had been no mass layoffs and said that during this period staff were being asked to take paid holiday.

"The business is going to carry on, the business has a future," said Harris. "I am trying to be as upbeat as possible."

But news that emerged yesterday about problems at Time prompted staff to take issue with Harris and the company. Many complained about not being informed of events but Harris said that all employees were being informed of the situation.

Part of the problem, according to staff, is a shortage of components as suppliers have become reluctant to supply the company. However, manufacturing is carried out for Granville Technology by VMT which, according to Harris, is "a completely separate company".

A union source said he has been "concerned" about the complex network of companies and brands that compose Granville, The Computer Store, Time, Tiny and VMT.

Colin Barker writes for ZDNet UK