Security firm shuttered by sabotage

Glenn Miller, Janteknology managing director, Friday issued a statement advising its partners and customers that the company had ceased trading after following a "major internal security breach". Miller did not comment in detail on the security breach, saying the matter was in Police hands.

"This event has had a devastating impact on the company, and compounding the effects of the adverse market conditions we have all been dealing with, has forced Janteknology to voluntarily cease trading," said Miller in a statement on the company's Web site.

Well-placed sources alleged that an employee of Janteknology entered the company premises last Saturday, stealing and corrupting company data files. The source further alleges that the perpetrator was caught "red-handed".

Janteknology distributed its software to New Zealand and Australia through an electronic distribution system.

The sudden closure of the company appears to have taken many of its partners by surprise. One network software provider that ZDNet Australia spoke to late today was unaware that company had ceased trading.

A representative of one software supplier who liaised with Janteknology regularly said the company had been experiencing difficult times.

"I thought that there was something going on in that Janteknology hasn't put any business our way since Christmas," said the spokesperson.

He had tried to contact Janteknology earlier this week to discuss sales and marketing plans--overdue from the company for around a month--but found that its phone "just rang out".

In his statement, Miller said that the company was in the process of restoring its records in order to clear backorders. Janteknology has told its customers to approach vendors for technical support until it announces "alternative arrangements".