Former Security Distributor Hills Ltd Goes Under After Court Loss.
Former security distributor Hills Ltd goes under – Hills Ltd, one of Australia’s leading security distributors for decades before selling that business unit to Dicker Data last year, has gone into administration after suffering a major court loss to a key supplier.
The case between Hills Ltd and Stellar Vision Operators was won by Stellar after an appeal, with an $A5.48m payout ordered on May 18. The dispute stemmed from patient entertainment systems ordered by Western Sydney Local Health District and involved Hills Health Solutions.
Hills Ltd suspended its shares last Monday, with a statement from the company saying it was “seeking a voluntary suspension pending resolution and an announcement by the company in relation to ongoing settlement negotiations between the parties and other stakeholders”.
Hills Ltd shares were trading at just 2.3c before they were suspended, with the company valued at just $12.3m. When you consider Hills Ltd turned over around $1 billion in 2000, it’s a tragic collapse for an iconic Australian company that enjoyed enviable brand recognition.
The collapse underscores the cost of failing to adapt to fast changing markets and highlights the risk of allowing a board of directors to hand-steer a complex business trying to survive at distribution’s bleeding edge.
As Australia’s largest electronic security distributor, Hills Ltd at one time had a dream team of vigorous and experienced leaders, none of whom was adequately supported and many of whom have gone on to brilliant success elsewhere.
From an observer’s point of view, it often seemed Hills Ltd’s senior management struggled to balance the demands of board and shareholders with the challenges of supporting a turbo-charged security market.
Hills Ltd Goes Under
It’s worth noting that while Hills Ltd no longer exists, the company’s legacy continues to nourish and drive multiple powerhouse security distributors across ANZ, including but not limited to, Dicker Data DAS, which took on virtually the entire Hills Ltd security team when it purchased that business unit last year.
Regardless, it’s impossible not to feel a pang as administrators Hall Chadwick take the reins at Hills Ltd and subsidiaries, including Hills Integrated Solutions and LAN 1.
You can see the ASIC announcement of Hills Ltd Goes Under here and see more SEN news here.
Important to note the collapse of Hills Ltd doesn’t impact AMES Australasia’s Hills Home Living business, which includes the iconic Hills Hoist.
“Former Security Distributor Hills Ltd Goes Under After Court Loss.”
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