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PCD Files Chapter 11, Plans Sale To Quality One

Hauppauge, N.Y. – Personal Communications Devices (PCD), founded 29 years ago as a part of Audiovox, entered into an agreement to sell substantially all of its assets to Quality One Wireless, which is a wireless-distribution company like PCD.

The agreement constitutes an initial “stalking-horse bid” by Orlando, Fla.-based Quality One to acquire the PCD assets through a sale under the U.S. bankruptcy code. To facilitate the deal, PCD filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court in the Eastern District of New York.

The bankruptcy filing does not include the Canadian operations of PCD, which offers its services throughout the Americas.

PCD said it expects to continue all business operations without interruption during the sales process.

PCD has not been a part of Audiovox since late 2004.

The acquisition, said PCD president/CEO George Appling, “will bring together very complementary capabilities and distribution channels to dramatically increase the overall value add to device makers, telecom carriers, and retailers alike.”

 The purchase will yield “substantial synergies while also expanding the customer base to include both the traditional tier-one carrier focus of PCD and the regional carrier and dealer focus of Quality One,” he said. Both companies will also continue to focus on expanding their accessories and M-to-M businesses, he said.

“PCD’s products and market segments are an ideal fit for our global distribution channels,” said John Chiorando, Quality One’s president/CEO.

PCD provides carriers and manufacturers with product-lifecycle management services that include planning and development, inventory, technical testing, quality control, forward and reverse logistics, sell-in and sell-through, and marketing and warranty support. It offers feature phones, smartphones, tablets, mobile hotspots, modems, routers, fixed wireless devices and the like.

Quality One Wireless is a distributor of wireless handsets, accessories and communication equipment throughout North America, South America and the Caribbean. The company’s services include refurbishing, repair and distribution of wireless devices.

Quality One will be the latest owner of the company originally known as Audiovox Communications.

In 2000, ACC formed a joint venture with Toshiba and in 2004 was acquired by UTStarcom. With that acquisition, UTStarcom formed its PCD division.

In July 2008, a management buyout of the division created the stand-alone PCD company.