Channel Surgery opens doors

Service offers help and advice for VARs in financial difficulties

Struggling VARs are being offered a lifeline with the launch of the Channel Surgery, an organisation created to help troubled channel players stay on their feet.

The Surgery, which was officially launched last week, will offer help and advice to VARs in financial difficulties.

"VARs have had a hugely difficult time recently, with many having gone under and many not knowing how to take their business forward.

Because we come from a channel background we have learned the lessons and know what is necessary to survive," said Sue Saunders, director of the Channel Surgery.

"With talk of consolidation rife in the channel, we will also offer advice about mergers and acquisitions."

Saunders added that the Surgery can also offer technical help, as well as advice on banking, credit and financial exposure.

Partners endorsing the Surgery include PKF, NMB Heller, Graydon UK, Bank of Scotland and SME Eurofinance. The Surgery also plans to partner with major distributors and vendors in coming months.

Co-director Mark Abrahams said: "Rather than just telling resellers that they need to cut 30 per cent of staff, we actually help them identify problem areas and look objectively at staffing levels, thus enabling them to get back to profitability."

Eddie Pacey, group credit services manager at Bell Microproducts Europe, said: "The general view is that the channel needs a third-party unconnected route they can take when they need help, and this cannot be provided by distribution, big banks or financial institutions.

"However, resellers are quite insular and very private, and it is going to be hard work convincing them they need help. But once the facade has been broken through they are quite willing to take advice."

Nitin Joshi, partner at insolvency specialist PKF, added: "The industry is at a crisis point and we have been looking for something like this for a long time. Resellers are crying out for it."