ilion loses UK Cisco franchise
Jewel in the crown gone, two staff suspended, and a £500,000 black-hole –- oh dear
Troubled networking distributor ilion has lost its Cisco franchise in the UK and suspended two staff who had been key members of the Cisco account team. According to sources, Ted Black and Andy Vine, managers on the Cisco account at ilion, were suspended last week. The Cisco franchise was regarded by many in the industry as ilion’s saving grace and the one thing that potential buyers would be most interested in picking up. With that gone the picture is now much changed for ilion. The suspensions of Black and Vine were followed by last Wednesday's announcement that "an irregular transaction in the UK business" had occurred. The networking distributor said it could cost the group around £500,000. ilion called in solicitors to start litigation against a third party -– which an ilion representative refused to name. Today ilion stated it would stop distributing Cisco products for the UK market from 30 June. But it will continue distribution in the rest of Europe. ilion’s share price fell 12.5 pence today, standing at 72.5 pence this afternoon. Last Tuesday, before any of these revelations, ilion’s share price was £1.02. ilion representatives were unable to comment on the suspensions or the details surrounding the loss of the Cisco franchise, but said the litigation process was continuing. ®
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