Bad karma for Chameleon as it sets date for CVL

Security VAR goes to the wall after attempts to find a buyer fail

Security VAR Outstep Ltd has commenced formal insolvency proceedings after running out of cash, ChannelWeb has learned.

The Farnborough-based firm, which trades under the name of Chameleon Security, will undergo a creditors' voluntary liquidation (CVL) on 11 June, insolvency practitioner Kallis & Co has confirmed.

According to sources, Cyber-Ark and Check Point partner Chameleon had been struggling to keep its head above water for months and had held talks with several potential suitors, all of which came to nothing.

Former Integralis UK boss Graham Jones - who is looking to bounce back into the security channel after ending his-three year stint at surveillance solutions vendor Quadnetics - confirmed he was among those to give Chameleon the once-over before passing up the opportunity.

"I had a look but it didn't fit the bill," he said.

"If you look at most mid-tier SIs, there is a real squeeze to prove their USP and value-add. Chameleon is very mono-vendor focused."

According to its website, Chameleon has a long list of big-name clients, including Aviva Investors, Capita and Camelot.

A representative of Kallis & Co confirmed to ChannelWeb that creditors were informed of the insolvency proceedings yesterday. A creditors' meeting will be held on 11 June where the CVL will occur.

Check Point distributor Wick Hill is among Chameleon's creditors and chairman Ian Kilpatrick expressed regret about the firm's demise.

"Our credit supports many companies beyond their formal credit rating and with close working relationships that trust is usually fully repaid," he said. "Chameleon is an unusual exception for a number of reasons and I do feel sorry for the staff there."

Jonathan Lassman, managing director of security reseller NTS, said Chameleon's demise is not reflective of the wider security channel's health.

"It is not good for the sector when an organisation cannot make it work when security is the hottest topic in the market right now," he said.