The Channel logo

News

By | Paul Kunert 7th February 2012 16:01

Channel body count hits dotcom implosion high

Reseller bloodbath in 2011

The channel body count in 2011 reached a high not seen since the dotcom bubble burst, stats from credit reference agency Graydon UK reveal.

In Q4 88 firms collapsed, up nearly 30 per cent year-on-year, which took the tally for the whole of 2011 to 356, up by almost one third on reseller fatalities in the previous twelve months.

"Insolvencies and administration fell sequentially in Q4, but clearly the figure for the overall year is the highest we have seen for nine years," said Alan Norton, head of intelligence at Graydon UK.

Businesses hitting the wall were typically small established resellers that ran into cash flow difficulties or the last of the national systems builders including PARS and Mesh Computers. The UK economy shrank in the final three months of 2011 and if this contraction is repeated in the current quarter then Blighty is technically in recession. However Norton said this was a "short and shallow" issue, and that insolvencies in the UK had peaked last year.

"We have started to see a US-led global recovery and typically Europe lags that economy by two quarters. We expect things to improve in the second half of the year," he told The Reg.

Firms in the channel will be praying he is right. ®

comment icon Read 8 comments on this article alert Send corrections

Opinion

Walking on water, image via Shutterstock

Chris Mellor

IDC stats reveal who's who in the backup appliance bearpit
Carry on Cleo

Gavin Clarke

Infamy, infamy, Amazon and Microsoft have all got it in for me!

Tim Anderson

Also signals stronger cross-platform tools, access to new markets

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers