Canadian Colocation and Web Hosting provider Scratch Telecom has announced that as of April 30 2010 they are permanently shutting down.

In an email sent to existing clients, management states in part “Due to a major dispute with Shaw Business Solutions, the Scratch Telecom Corporation will be ceasing operations as your hosting provider effective April 30, 2010 at 9:00AM (EST, GMT -5:00). The decision to move you to a more stable hosting provider was made with your best interests in mind due to the dispute seriously threatening network stability in the future. All billing packages to your account were canceled as of March 23, 2010 and you will not receive any further invoices from the Scratch Telecom Corporation.”

Scratch Telecom has made arrangements for clients to move their services to Priority Colo in Toronto. Many clients are facing a forty percent increase in cost.

Management continues stating in the email that “effective immediately we will be doing emergency support only via email. There may be higher delays in response than normal from both Priority Colo staff as well as Scratch Telecom staff due to the obvious inrush of inquiries we expect to see with regards to this unfortunate turn of events.”

HostJury is seeking clarification on the dispute with Shaw at the center of this announcement.

If the meantime if you are now seeking a new host you can check out some of the great hosts reviewed on HostJury