Internet cafe company runs out of steam

Hands-On, the ailing subsidiary of computer rental company Reflex Group, has closed its Manchester and Glasgow internet cafes and is believed to be selling its London site.

A representative in its London cafe confirmed that the Glasgow and Manchester branches had shut down and a source close to the company said the London site would be sold as soon as possible.

Roy Howitt, UK sales man-ager at rival internet service provider Easynet, claimed the company ran into trouble because market conditions had changed significantly over the past two years.

?More of them will go down because there is less of a price differential. Business is being eroded as internet connectivity becomes cheaper and techno-logy becomes far simpler. The number of people using cafes is being reduced as the internet makes inroads into the home,? he said.

A representative at rival internet cafe Cyberia said internet cafes mistakenly market themselves according to lifestyle and tend to ignore the potential for revenues gleaned from corporate training.

Hands-On did offer corporate training at its London site but a representative refused to comment on the closures.

The company began trading in late 1996 and is expected to fold once the London site has been sold.