Distributor Landis has hit resellers with blanket credit rises, forcing them to buy a minimum of £7500 worth of equipment per month. Partners unable to meet this new limit will be axed.
Simon Barry, managing director of reseller Synergie, told Computer Reseller News that he was contacted by Landis' marketing department regarding an offer the company was running. But when he tried to confirm an order he was told he had no account.
"No one from Landis contacted us," said Barry. "It left us with no time for a contingency plan. Even separate divisions within Landis don't seem to know what is going on."
"Synergie has had record month after record month. We have substantial credit accounts with distributors such as Ideal, Northamber, The Change Organisation and Anixter. We could have upped our limit if they had just spoken to us, but we were cut off," he complained.
Barry, who revealed that his business had just agreed a £750,000 installation deal with Bourne Leisure, said he would not go back to Landis to source parts for the deal.
Mike Watkins, managing director of Landis, admitted for the first time that the firm had attempted to impose higher levels of business on resellers by raising credit limits.
"If resellers cannot meet our limits they can buy from us on a cash-per-order basis. We cannot afford to fund smaller resellers; they are simply not profitable business," he said. "Many of them are also going bust and we won't run that risk. The new figure of £7500 is simply an extension of the £5000 limit we introduced in March, and we may well have to raise it further."
In March, Watkins had dismissed reports that Landis was seeking to raise credit limits on resellers to £5000 per month. He dismissed the suggestion as misinformed and denied that the firm was imposing a minimum level of business.
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