VarTec Shows Excel the Door

by louabbott on January 1, 2005

Phone+ – Published January 1, 2005

As it reorganizes under bankruptcy, VarTec Telecom Inc. is abandoning a vast marketing channel it has used to sell communications services to consumers and small businesses.

The Dallas phone company is severing ties with a network of 130,000 independent sales representatives working on behalf of Excel, the business it acquired in 2002 from Teleglobe in a deal that drew both parties into litigation. Excel representatives tell PHONE+ they were shocked to learn VarTec was abandoning business that booked more than $1 billion in revenue in 2000 when it was part of Bell Canada Enterprises Inc.

“We were very profitable. So it really came as a shock,” says Chuck Hoover, one of the first individuals to represent Excel beginning in 1989. Hoover says his organization, Telstar Inc., has comprised approximately 60 percent of Excel’s base of independent sales reps, with more than 800,000 agents cycling through parts of the organization over the last 15 years. Excel agents have earned commissions and bonuses based on their sales and the success of reps they have recruited.

In a letter distributed to Excel reps the day of the bankruptcy filing, VarTec Chief Restructuring Officer David Walsh stated VarTec “could not continue to support Excel’s marketing model” and was collaborating with the Shaklee Corp., the network marketing company formed in 1956, to provide an alternative for agents. Shaklee uses a network of independent distributors to sell nutritional supplements, home water treatment and air purification systems, among other products.

Read the entire article at Phone+

Also, read our company overview:  Excel Facts, News and Review

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