Managed service provider and ASP Vio is to cease operations this summer.


Shareholders Scitex and BT have decided that they can no longer finance the firm, which was not expected to become profitable for some time.


The 58-staff companys managed service will be wound down by the end of June, with its internet-based service closing by the end of July.


Scitex decided to withdraw from the firm at the end of February when it announced its 2000 results (PrintWeek, 2 March). At that time Vios management was in talks with Scitex and BT regarding an MBO.


Vio had already cut its cost base, and the management team had been attempting to secure additional funding.


"Im focused on looking after our staff, customers and creditors right now," said managing director Miranda Clegg.


"I didnt expect this," said Haymarket Publishing pre-press manager Meurig Evans. "I thought the MBO was by people who could see a future."


Chris Friend, European managing director of rival managed service and graphic arts ASP WAM!NET, said that Vios demise didnt dent his companys confidence in the fundamental business model.


"Were working to the plan we set ourselves for this year," he said. "WAM!NET went through a headcount reduction last August and were meeting our financial targets."


WAM!NET counts MCI WorldCom and SGI among its backers. Earlier this year it secured a 21m ($30m) bank line of credit to provide working capital.


Story by Barney Cox