Landis shuts out ex-Ilion resellers

Thousands of former Ilion resellers could find it difficult to buy from Landis after the distributor transferred only 1500 of the 9000 credit histories on Ilion's financial system to its own.

Thousands of former Ilion resellers could find it difficult to buy from Landis after the distributor transferred only 1500 of the 9000 credit histories on Ilion's financial system to its own.

Roger Swainson, managing director of Bedford-based reseller Mimic, said he called Landis last Friday to chase an order and was informed that he no longer had a credit account.

Swainson said Landis told him that it will offer credit only to resellers spending a minimum of £5000 a month.

He was told that eight other resellers had called Landis that day and were in the same situation. "What I really object to is not being informed in advance," he said.

Landis managing director Mike Watkins said that if Swainson was told there was a £5000 minimum he was misinformed. "We're not imposing a minimum level of business. We were looking to increase the credit limits of customers so they can do a decent level of business with us," he said.

Watkins said Landis had cut credit only to those resellers that were yet to make a purchase this year and had credit limits of under £2000. "If any reseller has an issue, give me a call," he said.

Swainson said it did not make sense because although Mimic had not bought anything this year, its credit limit with Ilion stood at £10,000 a month. He said that a Landis sales manager has since contacted him and said the problem was caused by the failure to transfer all trading histories from Ilion's system onto Landis's.

"I was told they'd drawn an arbitrary line under the top 1500 accounts and not bothered with the rest. Now their policy is to wait and see who complains and deal with resellers on a case-by-case basis," he said.

Swainson said Mimic's history of prompt payment with Ilion had built a credit rating far higher than a credit-rating agency such as Dun & Bradstreet would grant, and he is angry to have lost it.