SyQuest halts operations, may file for bankruptcy

November 03, 1998|By BLOOMBERG NEWS

FREMONT, Calif. -- SyQuest Technology Inc., a maker of storage devices for personal computers, said yesterday that it has suspended operations and is considering alternatives including filing for Chapter 11 bankruptcy protection.

The company said without elaborating that it plans to maintain limited support to its customers. Its shares rose 3.125 cents to 34.375 cents before the company requested a halt in trading.

In August, SyQuest said it would fire 950 employees, or half its work force, and cease all manufacturing at its Fremont headquarters. The move came after its fiscal third-quarter loss for the period that ended June 30.

The company has struggled with plummeting prices for its products, coupled with lackluster PC demand this year, and has reported losses totaling more than $200 million since 1995 as rival Iomega Corp. has taken market share.

Pub Date: 11/03/98

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.