reports.

US electronics giant Sharp has terminated its authorised dealer agreement with Staples Ltd. because it claims the Bermudian stationery company has not paid its bills.

But president and chief executive officer of Staples Ltd., Michael Johnson, has categorically denied that his company has failed to pay its dues.

According to Sharp, the dealership agreement was officially terminated on September 17 this year, following a letter warning this would happen a month earlier.

In a letter to Mr. Johnson dated August 13, 1999, Walter McCowat, associate vice president, sales at Sharp said: "Due to the non-payment of your account with Sharp, I am informed by our credit department that it has become necessary to institute collection action.

"As you know our dealer agreements with your organisation provide that you shall pay Sharp the purchase price of products when due. Accordingly, your failure to meet this basic obligation constitutes a violation of our dealer agreement.'' Mr. Johnson confirmed that Staples Ltd. was no longer the authorised dealer for Sharp but said that the account was terminated by Staples Ltd. because of an ongoing dispute with Sharp.

"We categorically deny that non-payment is the reason for the termination.

That document in itself is erroneous. It was a proactive move on the part of Staples due to lack of support from Sharp,'' said Mr. Johnson.

And he added that Staples Ltd. continued to sell and provide servicing for Sharp products which they now buy through a third party.

He said Staples continued to service customers who bought Sharp goods and added: "In no way has this affected our ability to take care of our customers.'' In the letter of August Staples said: "This is a formal notice of the termination of your organisation as an authorised Sharp dealer pursuant to various dealer agreements (General Line, Reprographic Line, Digital Imaging Products, Facsimile Systems and Facsimile Open Line) effective 30 days from today.

"Please henceforth cease to represent your organisation to any person, including potential end-users,as authorised by or having business relationship with Sharp with respect to copier, facsimile or digital imaging products.'' In an article in the Royal Gazette published on March 31 this year, it was revealed that another dealer on the Island had been awarded an authorised dealer agreement with Sharp.

Mr Johnson said in a written statement: "Prior to March 31, Staples Ltd. had initiated several discussions with Sharp Corporation regarding the existing business arrangement. Subsequent to The Royal Gazette article of that date, and Sharp's unwillingness to provide additional information, we did set up alternative processes in order to continue to service our Bermuda customers.

Sharp cuts link with Staples "Our efforts in this regard have been very successful in that we continue to provide our customers with top quality service on all products sold by Staples.'' He added that most customers had renewed their service and maintenance contracts and added that there were at least three other dealerships who had Sharp products available on the Island.

Michael Johnston