From Fast-Growth Superstar To Chapter 11
Just four years ago, Lumenate, No. 148 on the 2017 CRN Solution Provider 500, was named the 2nd-fastest growing solution provider in all of North America. At its prime, Lumenate said it had annual sales approaching $175 million and 240 employees across 10 major metropolitan areas in the United States.
Now, one creditor claims the company is "hopelessly insolvent" and $50 million in debt, with the company owing $25.5 million to Avnet Technology Solutions, and as much as $24.5 million to a range of other creditors, including IT vendors and distributors such as Cisco, Westcon, Ingram Micro, Veritas, Pure Storage and Symantec.
The company also owes as much as $500,000 to the Texas state comptroller for unremitted sales tax, according to court filings from a creditor.
The startling turn of events left observers with a multitude of questions surrounding how the once-successful company found itself in this position. Lumenate President Reagan Dixon didn't respond to multiple requests for comment, while Tech Data -- which now owns Avnet Technology Solutions -- declined to comment.