Subject: General Tech | April 1, 2017 - 04:04 PM | Scott Michaud
Tagged: Mad Catz, bankrupt
Back in September, we reported on the purchase of Saitek, from Mad Catz to Logitech, for $13 million USD in cash. Unfortunately, we now need to report that Mad Catz has filed for Chapter 7 bankruptcy on March 30th, 2017. This level of bankruptcy is strict; it involves shutting down and liquidating. If we see a Mad Catz in the future, it will be someone else who purchased their trademark.
When I first heard this news and posted it in our PC Perspective Slack channel, the immediate reaction was, “Is this an early April Fool’s joke?” Apparently not, but it highlights how out-of-the-blue this seemed if they weren’t on your radar. Last year, they shrunk their workforce by about 37%, but the news kind-of flew past us. (A good barometer of company health is that lay-offs around 10% is typical for a restructure. When you start getting past this level, like 15% or more, then it’s okay to be suspicious about whether it’s driven by something other than the stereotypical handbook of corporate management.)
Other than this early tremor, and the New York Stock Exchange delist story from earlier this month, it seemed like the company was just coasting along. Hopefully everyone affected will have no problems finding new employment soon.
Subject: General Tech | November 27, 2013 - 03:04 PM | Jeremy Hellstrom
Tagged: sad, ocz, bankrupt
It has been a rough year for OCZ as they tried to overcome the problems that they inherited from once CEO Ryan Petersen. The news first broke in February when Wells Fargo announced that they would have OCZ delisted from the stock exchange as they had not submitted an acceptable profit statement since Q1 of 2012. That would have had a drastic effect on the ability of OCZ to do business and would have triggered a shareholder revolt. The new company head, Ralph Schmitt, managed to stave off the Feb 28th deadline with the help of Crowe Horwath LLP's auditors and received an extension on the SEC deadline. As long as OCZ could produce an accurate accounting of 2012 and Q1 of 2013 by April 8th they would not be delisted. Unfortunately the corrected bookkeeping revealed a serious problem with OCZ's sales model. The higher their raw revenues climbed during 2013 the more their net loss increased, with sales incentives, poor chip supplies and other costs contributed to a seemingly unsustainable business model.
Today the sad announcement of the coming demise of OCZ became official, at 9AM EST trading of OCZ stock was suspended as they announced their impending bankruptcy. The trading resumed just a short time ago, at 2:30PM and as you can see the news is bleak for shareholders.
The stock price declined by 67% since the beginning of the year until this announcement and is currently plummeting even more. According to Barrons and other sources, Toshiba has made an offer to purchase OCZ's assets, the "“material terms have been agreed to,” though there are a number of conditions that have to be satisfied, such as retention of employees." Until this deal is finalized we will not know the fate of OCZ and their product lines or warranty support and it could be quite some time before the specifics are agreed upon and announced to consumers. It is a sad day for enthusiasts who have enjoyed the great performance and low prices that OCZ's SSDs lines offered.
UPDATE : “With the recent news OCZ wants to reassure all our valued customers that the Company is honoring all product warranties. If any customers require support they are encouraged to contact our customer support and forum support teams who will be more than happy to assist.”
Subject: General Tech | January 20, 2012 - 01:24 AM | Tim Verry
Tagged: kodak, chapter 11, bankrupt, restructure, patents, cameras, photography
Eastman Kodak company has been on the rocky edges financially for some time and late last year there were rumors that Kodak would be filing for bankruptcy. Well, it looks like the company's financial position is now official, as they have filed for Chapter 11 bankruptcy and are working to restructure their US operations and become profitable. The company has paired with Lazard, FTI Consulting Inc and Sullivan & Cromwell to assist them in shaving down their business into a lean, mean, picture capturing machine. Under their Chapter 11 filing, Kodak will work to bolster liquidity by trimming down the business to its core and monetizing their "non-strategic intellectual property." The IP likely will involve Kodak selling off some of their non-core patents for imaging. After all, they have a catalog of 1,100 patents, so they definitely have plenty of room to work with in monetizing their assets.
According to Tom's Hardware, since 2003 the company has shut down 13 manufacturing plants, 130 processing facilities, and shed 47,000 workers. Further, to help with the restructuring process, they have obtained $950 million debtor-in-possession loan through Citigroup that will mature in 18 months. This should give the company enough cash to tide them over while they restructure and prepare to sell off certain assets. Kodak states that "Kodak aims to build company that will be successful in the marketplace – and a positive force in the communities we call home." It is important to note that the non-U.S. based operations of Kodak are not affected by the Chapter 11 bankruptcy filing.
Kodak has set up a web page to detail their restructuring efforts.