Feeds

American LaFrance blames IBM for bankruptcy

Big Blue silences sirens

Secure remote control for conventional and virtual desktops

Emergency vehicle maker American LaFrance (ALF) has claimed that a bungled implementation of IBM software contributed to the demise of its business.

The firm voluntarily filed for bankruptcy protection in the US district court of Delaware in Wilmington yesterday, in which it said that the installation of a new ERP system had caused significant disruptions to production, and given execs a massive $100m debt headache.

Privately-held ALF said in its Chapter 11 filing with the court that it had encountered significant operational difficulties after it was separated from parent company Freightliner LLC in 2005.

For 18 months after the spin-off, Freightliner provided accounting, purchasing, inventory, production, pay-roll and finance services for ALF while it worked on setting up a new computer system.

However, ALF said that when it switched to its ERP software last June, "serious deficiencies" threw its operations into chaos.

It said: "These problems have resulted in slowed production, a large unfulfilled backlog, and a lack of sufficient funds to continue operating."

But the firm, which manufactures fire trucks, ambulances and other emergency vehicles in the US, only mentions the software vendor once.

It said it was considering taking action "based upon services provided by IBM in connection with the problem-riddled transition to the ERP system".

IBM confirmed to The Register that its systems had been used by ALF but would not be drawn on any specifics.

A Big Blue spokesman said: "We are reviewing the documents filed with the court and have no further comment to make at this time." ®

Boost IT visibility and business value

More from The Register

next story
'Stop dissing Google or quit': OK, I quit, says Code Club co-founder
And now a message from our sponsors: 'STFU or else'
Why has the web gone to hell? Market chaos and HUMAN NATURE
Tim Berners-Lee isn't happy, but we should be
Microsoft boots 1,500 dodgy apps from the Windows Store
DEVELOPERS! DEVELOPERS! DEVELOPERS! Naughty, misleading developers!
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Uber, Lyft and cutting corners: The true face of the Sharing Economy
Casual labour and tired ideas = not really web-tastic
Linux turns 23 and Linus Torvalds celebrates as only he can
No, not with swearing, but by controlling the release cycle
Scratched PC-dispatch patch patched, hatched in batch rematch
Windows security update fixed after triggering blue screens (and screams) of death
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.