SyQuest Technology, once the pioneer in removable computer storage devices, has filed for Chapter 11 bankruptcy protection and reached a tentative agreement to sell "substantial assets."
The buyer, which was not identified, would acquire its patents, other intellectual property, manufacturing and development equipment, finished goods, work in process, and raw material inventory for disk drives and cartridges. SyQuest would not disclose the terms of the asset sale.
The company, based in Fremont, California, said in making the announcment Tuesday that it would retain all its accounts receivable and ownership of its building in Penang, Malaysia.
After months of struggling, the company said on 2 November that it would shutter its operations and might need to file for Chapter 11 protection. Once in the industry vanguard, SyQuest announced in August that it would cut its work force by half, or 950 jobs.
On Tuesday, SyQuest said it would allocate a portion of the unspecified asset purchase price to provide warranty service for products already sold. In addition, the buyer would provide customer support and warranty service for all SyQuest products it sells in the future.
