Skip to navigation
Latest News

Former Mesh Computers owner back in charge

Mesh PC

By Barry Collins

Posted on 15 Feb 2012 at 13:58

The former owner of Mesh Computers has effectively retaken control of the company, which went into administration with debts of more than £2 million last year.

Mehdi Sherafati ran Mesh for over 20 years, before the company entered administration in May 2011. At the time of administration, the company owed almost £400,000 to Her Majesty's Revenue and Customs, and £1.7 million to unsecured creditors, including customers and suppliers of the British PC manufacturer.

We will continue to support existing Mesh customers and make sure that warranty support is provided with the best standard of personal care possible

The administrator sold Mesh Computers to a former supplier, PC Peripherals Ltd, in a deal worth £1.55 million. £1.498 million of that sale price was awarded to Mr Sherafati, who was the only secured creditor of the company, having lent the company £1.7 million in January 2011 in the form of a debenture.

Now, Mr Sherafati has regained control of his former company. Companies House records show that he was appointed as a director of PC Peripherals Ltd on 8 February. The company has one other director.

A spokesman for Mesh Computers' administrator, MacIntyre Hudson, told PC Pro that Sherafati was interested in buying the business when it first entered administration. "At the time Mr Sherafati did express an interest, but not at the levels that we were looking to achieve for the sale of the business, and therefore he didn't proceed with any formal offer after we were appointed," the spokesman said.

"I wasn't aware he is now involved with PC Peripherals, and we would have to consider what effect - if any - that has on the sale we completed nine months ago."

A condition in the sale agreement with PC Peripherals stated that if "the purchaser [PC Peripherals] was to then sell the business on at a higher value than the current sale price, then the Joint Administrators will be entitled to 20% of the sale proceeds in excess of the current agreed completion price".

MacIntyre Hudson said it would investigate the terms of the new deal if asked to by one of the company's creditors. "We would have to look at whether an actual sale of the business of Mesh Computers has been completed with that transaction happening," the spokesman said.

Back in business

In a statement sent to PC Pro, Mr Sherafati said:

"Having worked hard on developing Mesh for almost a quarter of a century, I want to restore Mesh to the forefront of the UK system builder market.

"I have bought back the company and have again begun investing in the business to grow the organisation. New premises and a completely new IT infrastructure are already in place and we are already working with Intel, AMD and other key manufacturers to generate new offers for 2012.

"We will continue to support existing Mesh customers and make sure that warranty support is provided with the best standard of personal care possible. The market has been very tough since the world’s economy went through a downturn in 2007/8, but all of the information we’re hearing from research companies like IDC says that the PC industry will expand in 2013/14 – driven by new operating systems, processors and graphics cards.

"Mesh will be part of that upsurge, leading the way through investment in R&D. We will be doing our best to ensure that Mesh customers get award-winning product, with excellent service at a competitive price.”

Is your business a social business? For helpful info and tips visit our hub.

Subscribe to PC Pro magazine. We'll give you 3 issues for £1 plus a free gift - click here
User comments

hmmm

Sounds as dodgy as their customer service used to be....

By andycollinson1 on 15 Feb 2012

Football similarities

Can't help but think that Craig Whyte is doing the same with Rangers FC,let the business go bankrupt & then buy it back with no debts.

By bronven on 15 Feb 2012

And the unsecured creditors and purchasers will not see a penny of their £1.7 million.

By bigrob14 on 15 Feb 2012

"The law is an ass."

When does "That's business." become morally unacceptable?

By CraigieDD on 15 Feb 2012

that's another fine mesh you've gotten us into...

What makes him think during this economic climate he can do any better the second time round? I agree it is exceedingly dodgy and morally wrong but unfortunately still within the stupid laws of this country.

By mr_chips on 15 Feb 2012

Shoot me

Ok, you may all shoot me for saying this, but I think the guy has guts.

The evidence shows us that he ran the company for 20 years prior to it's demise in a tough economic climate. The company got into trouble, but was able to be saved by using the laws to prevent it's total collapse and was sold to another company.

He's now come back to a company he clearly loves and is attempting to make it great again.

If he was some dodgy car dealer type, he would have just flit with the money and lived in a nice villa on a beach somewhere.

The laws are set up to precisely allow this kind of entrepreneurial spirit, so people can fail safe in the knowledge that they don't go down with the company.

Now before everyone cries foul of people losing there money, I don't see there was any evidence of malice in that and let's remember he kept a lot of people employed, help them feed themselves and their families and probably allowed them to buy their houses.

We should be applauding this sort of thing and maybe a few more of us should be doing it, may make the unemployment figures drop a little.

By Steve_Adey on 15 Feb 2012

I'm not that stupid

I bought PCs from Mesh twice. I have only myself to blame for the second purchase because I should have known better!
Had problems with customer service on the first PC and with the second we had to refuse to accept delivery after it was supposedly “repaired”. The original was dead on arrival and the "repaired" machine was "in the post" for a number of weeks before I finally cancelled it (they then tried to get my wife to accept delivery the next day – funny that) and I relied on section 75 to get my money back. That was about 2 years before they went bust.
Even I am not stupid enough to buy another PC from Mesh even a resurrected Mesh.

By SimplyGrey on 15 Feb 2012

Do Your Research Steve_Adey!

Less than 8 months after walking away from customers and suppliers owed ££££ tens of thousands, Max Sherafati is back running Mesh Computers (PC Peripherals trading as....).

Mesh Computers Ltd was put into pre-pack administration on 31 May 2011.
The 'business' was 'bought' by an 'ex-employee' Reza Jafari who owned PC Peripherals, a moribund components company with a net worth of less than £1,000.
By coincidence (?) Mesh PC Ltd was created on 23 May 2011 with one Director - Reza Jafari. This company remains 'active' but has not yet filed accounts.
PC Peripherals now trades as Mesh Computers. Mesh Computers Ltd remains in administration
Pc Peripherals appointed Mehrdad Yeganeh as a Director 22 Aug 2011......who registered Mesh Corporation Ltd on 21 Oct 2011 with.... Mehdi Sherafati (Max)
Reza Jafari terminated his appointment as Director of PC Peripherals on 24 Nov 2011
Max Sherafati was appointed a Director of PC Peripherals on 7 Feb 2012. Did he ever really go away?

Mesh Computers had previously failed and been taken private in 2005.
Re the 'Buyout' in Jun 2011: Read this thread:
http://www.pcpro.co.uk/forum/viewtopic.php?f=15&t=
349546&p=1966351&sid=948fc8c50e3add8687684fea163fb
42b#p1966351

Does any of this seem meritworthy or ethical to you?

By incognitii on 15 Feb 2012

Questions posed on 1 Jun 2011 - still unanswered

Will the company continue to take cash on order?
Will customer funds be placed in a ring-fenced Customer Account until dispatch of order?
Will it guarantee delivery dates?
- And if these are not met?
Will it radically overhaul its customer services processes to:
a. Keep customers informed
b. Offer order tracking
c. Answer telephones
d. Be honest with and polite to customers
e. Call customers back when promised
f. Respond to emails and customer complaints
g. Honour warranties and cease charging customers for returns after 14 days
h. Action prompt refunds
I. Stop deleting posts and banning complainants from the Mesh Owners Club forum

Despite the 'economic' argument given by Max Sherafati, the last Mesh failed because it treated customers appallingly and the customer cash funding operations dried up. Will this iteration be any different?

By incognitii on 15 Feb 2012

Apologies for the multiple post

I didn't post it more than once - honest!

By incognitii on 15 Feb 2012

@incognitii

.
Did you by any chance refresh the screen after you had posted?

If you do - for example to check for replies - even though the reply page has gone it still gets resent.

The software for this forum is probably the most amateurish I've ever seen. Really dire and severely lacking in the features that every other forum on the net has had for years.
.

By qpw3141 on 15 Feb 2012

Decent, Honest and Truthful

I'm sure that Mr Sherafati has always acted in the best interests of Mesh's shareholders and creditors.

Which is unfortunate, as to the uninformed observer, it would appear that he used the £1.7 million of unsecured creditors money to buy the company. Strange how the unsecured creditors figure is the same as the debenture. Although that is probably just one of those unfortunate coincidences.

However, I wish Mr Sherafati every success with his new old venture. And that he has the opportunity to voluntarily pay back the unsecured creditors the money that was owed to them.

I also applaud the administrators for appearing to be more concerned with their 20% cut than the creditors of the old company.

By Penfolduk01 on 15 Feb 2012

I liked Mesh Computers....

I liked my Mesh computer, but getting support was terrible, so I learnt to fix it on my own. Fortunately it was stolen by some sad soul who can take all the hassle of fixing it themselves.

But I would never,ever purchase another Mesh branded computer. This repurchase seems as morally dodgy as it is legal.

By Ajamu1 on 16 Feb 2012

I liked Mesh too!.

I bought mesh three times, and was very happy.

By creechitup on 16 Feb 2012

Mrs Browns Boys...

This sounds like a plot from Mrs Browns Boys or Father Ted.

Its so tangled and twisted its beyond something that would happen in Ireland and firmly into Greek Waters.

It does suit the Zeitgesit, where corporations may act indifferently whilst transferring all risk to the man in the street.

By Gindylow on 16 Feb 2012

More (obvious) Questions

1. Why is he talking as if he is running a new company, when (officially) he has just become a director of PC Peripherals, which was already trading as Mesh Computers?
2. Recent reports show UK PC sales down 20% over the past quarter, 16% on the year. So he has 'bought his company back to grow on an expected expansion in two years' time?
3. Mesh Computers Ltd failed not due to the economy but because it treated its customers appallingly and the customer cash funding operations dried up. Will this iteration be any different?

My BS detector has gone off the scale............

By incognitii on 16 Feb 2012

What I Want to Hear

What I want to hear is that neither PC Pro or any other Dennis publication is going to be accepting any hardware for review or advertising from this cowboy outfit.
If I wnt thru my back issues, no computer magazine excepted, I could produce dozens of Recommended,Best Buy, five star and A List reviews for MESH, nary a one saying do not touch with a barge pole. If you took their money for advertising for donkeys I am afraid you have a share of the guilt and opprobium.

By Deadtroopers on 16 Feb 2012

Speak as you find

I had a good machine from Mesh, well built - so I bought another, equally well built and another good piece of kit.

By AdrianB on 16 Feb 2012

Does a Leopard change it's spots?

Mesh was an absolute rubbish company to deal with for all the time this guy was there. Why on earth should anyone other than a complete cretin have anything to do with him?

By wizwot on 17 Feb 2012

ali

Have bought 4 Mesh PCs over the 3-years before they went down. All of them worked fine (2@work and one@home still going today, but other one damaged -fell off desk!!)all were delivered on-time and I cant fault them.

Not sure I happy to buy more if the payment has to be up-front.

By Alison789 on 17 Feb 2012

Mesh-ine wash

Ethically questionable business practices are the key to personal wealth - and what's better is they're all legal. You just have to pay a large sum to a team of lawyers who were paid an even larger sum to draw up the law (they know where the loopholes are).

By dubiou on 19 Feb 2012

Mesh Computers - Untrustworthy

They supplied me with cheaper components than I ordered - luckily I looked inside the case.

They've stopped answering my emails so I'm having to go through my credit card company...

By murkle on 19 Feb 2012

Trading since 1987 - so how about some loyalty?

Not only has the previous owner of a business been allowed to run it with no recourse to those who lost out, it now has the cheek to say it has been trading since 1987?

It has NOT been trading since 1987, it has been trading since 2011. Otherwise how about some loyalty?

It's utterly appalling that this is apparently legal.

By halsteadk on 30 Mar 2012

Disgusting

Having read the comments above I flet I had to write to support the negativ experience. I bought two Mesh computers from this company and whilst 'eventually' they were sorted the after sales support was disgusting. Wrong components came or did not come at the appropriate time.

All in all after commiting my hard earned cash to this company they did not want to know and I would never ever buy anything from them again.

Sounds like the revival of the business is as dodgy as their service.

Just as a postscipt, the magazines who regularly 'sold' this company to me must take some of the blame.

By bagpiperay on 9 Jun 2012

C**s

a year and a half later, still no computer and £600 down. Could never get into contact with anyone at mesh.

By anonymouspete on 20 Aug 2012

C**s

a year and a half later, still no computer and £600 down. Could never get into contact with anyone at mesh.

By anonymouspete on 20 Aug 2012

Leave a comment

You need to Login or Register to comment.

(optional)

advertisement

Most Commented News Stories
Latest Blog Posts Subscribe to our RSS Feeds
Latest ReviewsSubscribe to our RSS Feeds
Latest Real World Computing

advertisement

Sponsored Links
 
SEARCH
Loading
WEB ID
SIGN UP

Your email:

Your password:

remember me

advertisement


Hitwise Top 10 Website 2010
 
 

PCPro-Computing in the Real World Printed from www.pcpro.co.uk

Register to receive our regular email newsletter at http://www.pcpro.co.uk/registration.

The newsletter contains links to our latest PC news, product reviews, features and how-to guides, plus special offers and competitions.