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The 10 Biggest Channel Stories Of 2017

Alec Shirkey

9. Solution Providers Hit Rough Financial Waters

Longtime international IT services giant Ciber filed for Chapter 11 bankruptcy protection in April after defaulting on its credit facility from Wells Fargo, which had an outstanding balance of $28.5 million.

HTC, No. 189 on the 2017 CRN Solution Provider 500, would end up outbidding Capgemini to acquire Ciber for $90.7 million in June, ending a 43-year run for the Greenwood Village, Colo.-based solution provider.

A stranger story revolves around Addison, Texas-based solution provider Lumenate, which saw its relationship with Avnet Technology Solutions turn sour following the Tech Data acquisition. The fallout saw Avnet axe its vendor financing support, and within a few months, Lumenate would file for Chapter 11 claiming that it owed $25.5 million to Avnet, and as much as $24.5 million to other creditors.

Once one of the fastest-growing solution providers in the country, Lumenate saw U.S. Bankruptcy Court Judge Stacy Jernigan side with creditors in the Chapter 11 filing, paving the way for the potential dissolution of the company.

 
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