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CHS canned by Intel

Major distie loses Chipzilla franchise in UK & Germany

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Intel has ditched CHS Electronics as one of its UK distributors. A representative at the chip giant today confirmed: "We have terminated our distribution agreement with CHS Electronics in the UK and Germany. We will still keep our key agreements with CHS in France and Turkey." The representative refused to comment on the reasons behind the decision, but added: "We often review our distribution agreements." In regard to whether any future review would bring CHS back into the Intel UK fold, she said: "We never say never. But at the moment we have only the franchises in France in Turkey." Sources said that CHS' well-documented financial difficulties may have been behind the move. One source warned: "CHS is definitely suffering from stock supply issues in the UK. Expect more vendors to follow Intel's lead." Peter Rigby, CHS group marketing director, was unaware of Intel's decision when we spoke to him this morning. ®

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