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C2000 extends credit to former CHS customers

Smaller resellers hit hardest by collapse of distribution giant

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Computer 2000 (C2000) is upping its credit limits to resellers to patch the hole left by CHS Electronics Plc. The Basingstoke distributor said it would increase credit for existing resellers and open accounts for those resellers previously with CHS.

The company saw the number of resellers it traded with in October rise by between 10 and 15 per cent. Though obviously not all of these came from the collapsed CHS. It also recorded a 30 per cent increase in orders through its In-Touch 2000 online order service.

C2000 said it would offer a full review of credit facilities to all resellers who used to trade with CHS. "This is a difficult situation – particularly for smaller resellers, as many of them have been left with a greatly reduced purchasing power," said Tony Taylor, C2000 finance director. "We are doing all we can to extend new or additional credit to resellers where it is requested."

Julian Klein, C2000 sales director, said CHS' fall had hit smaller resellers hardest. "Smaller resellers had continued to use CHS and it was naturally eager to attract as much business as it could from them," said Klein. "There is no question that CHS' collapse has left a gaping hole in the market in terms of product availability and credit lines."

C2000 has also cashed in on the situation by snapping up half of the staff on CHS' former software licensing team. Seven CHS employees have been drafted in, most of whom will create an SME Software Licencing Team at C2000. And another seven general sales staff have also joined, with more CVs expected get the green light in the next few days.

The distributor said the fall of CHS had given it the perfect opportunity to set up the SME Software Licencing Team ahead of schedule.

It also plans to launch a Licensing On-Line service to let resellers place licensing orders over the Web. ®

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