Technology retailer forced into surprise Chapter 7 bankruptcy todayheadline

When a company catches public momentum, it can ride the wave as long as possible.

The problem, is that when that ride ends, the company needs to be prepared for the period when it’s not the hot brand. 

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That has proven to be a challenge for a lot of companies. Retailers like True Religion flew high, had a moment in the sun, and the crashed hard. 

True Religion filed Chapter 11 bankruptcy and was bought by an investment firm giving it a new lease on life.

That’s not always the case and many brands don’t survive past their time of great prosperity.

There was a time, for example, when Blackberry was a must-have phone for every business leader. That company opened the door for Apple to establish the iPhone with that market by failing to add new features over multiple years.

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Other brands like TiVo, which once owned the digital video recorder (DVR) space still exist, but only as a fraction of what they once were.

Creating a hit product and building a company for long-term success are two very different things.

MWave rode the wave until it didn’t

Most Americans know MWave as a company the built custom gaming computers. There was a period where off-the-shelf computers lacked the power needed to play games like “Call of Duty.”

In these games, having a faster processor, a better audio card, and other edges gave you a better chance to be competitive. MWave was not the only company catering to these players, but it was one of the hottest names.

While the company still offered those services, it serves a different role in its home country. The company described its main purpose on its website. 

“Mwave.com.au is Australia’s leading online tech retailer, and is well-renowned amongst PC enthusiasts and the gaming community. With over 10 years of experience, Mwave has developed a strong reputation in its technical expertise, shopping convenience, and professional customer service,” it shared.

The company then went on to brag a bit.

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“Not only is Mwave a popular online destination for PC consumers, it is also highly regarded by businesses, big and small,” it added.

Now, MWave has been placed into administration, the Australian version of a Chapter 7 bankruptcy.

What happened to MWave

MWave’s website makes no mention of the company being placed into administration on its homepage. Instead, it still touts all the things the company does and makes reference to the custom PCs it made its name selling.

“Mwave provides high convenience with a wide range of computer & electronics products as well as high in-stock availability of the most popular products. Our Custom PC manufacturing with our Ready-2-Go (R2G) gaming systems suit unique or urgent customer requirements,” it shared.

The company also prided itself on serving all levels of customer expertise.

“At Mwave we are passionate about technology and enthusiasts at heart. As a specialised team of experts, we can assist you whether you are tech-savvy, a PC gamer, a business customer or a novice,” it added.

Antony Resnick and Henry Ho Leung Kwok of DVT Group in Parramatta NSW have been appointed to liquidate the company.

The company shared a note on its blog saying that a deal was made on June 16 for its assets.

“The digiDirect Group has acquired the Mwave business. We will continue to trade from our Lidcombe headquarters for the time-being before eventually transferring Mwave operations across to The digiDirect Group’s headquarters in South Strathfield in Sydney,” it shared.

Related: Huge home retailer filing Chapter 11 bankruptcy, closing stores

MWave plans to honor all gift cards and store credits. It’s also going to fulfill any orders which it has been paid for.

“We are committed to fulfilling all orders swiftly and efficiently, maintaining the place in pre-order and backorder queues of all customers. We anticipate there will be a maximum of 2-3 days delay on any current available shipments as we work through a stocktake and change over courier accounts to new ownership,” it added.