Specialist distributor Wireless Distribution has ceased trading, according to business partners of the firm, after struggling to develop close relationships with vendors.
The company was formed in 2001 as AAA Computers. This became Layer 7 Distribution in November 2001, only to be renamed Galaxy Systems six days later. It emerged in its final guise of Wireless Distribution in April last year, specialising in the wireless local area network market.
In June, Wireless Distribution opened a second office in Hampshire as part of a planned European expansion. According to Companies House, it last filed its accounts in August 2002, with the latest figures, expected in June, now overdue.
Neil Hunt, wireless product manager at reseller Skynet Systems, which bought from the distributor, confirmed Wireless Distribution had ceased trading. "We used to buy Bluesocket products from it, but we will have to move to equIP," he said.
EquIP is Bluesocket's sole distributor in the UK, and Wireless Distribution was acting as a sub-distributor.
Graham Smee, director at equIP, confirmed that his company is no longer dealing with Wireless Distribution. "Any VARs that bought Bluesocket kit from the distributor can transfer to buying from equIP," he said.
Martin Cassidy, vice-president of vendor Bluesocket, said Wireless Distribution offered niche skills to the channel. "Unless the workers find new jobs within the industry it will be a great loss," he said.
But he added that the firm had been "caught in the middle ground" as a sub-distributor.
"It bought through equIP and added services on top," he said.
One industry source said Wireless Distribution was building relationships with vendors but was forced to carry out sub-distribution in many cases.
"There is not much margin in this. Until a distributor gets major distributorships it struggles," the source said.
Steve Johnson, director of distribution UK and Ireland at 3Com, said the vendor worked with the distributor on an unaccredited basis. He said: "Only authorised distributors [can build] close relationships with vendors."
Despite repeated attempts to contact Wireless Distribution, CRN was unable to get a response.
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