Chapter 11 looms for Syquest

Storage firm Syquest late yesterday said it had suspended its operations and was considering its future, including the possibility of taking refuge under Chapter 11 of the US bankruptcy rules. It stopped trading on the US stock exchange at close of play. The move follows a bad year for all storage companies, but Syquest in particular has been particularly hard hit. Three months ago, it said it would cut nearly half of its jobs worldwide but the hammer blow came last week when its credit facility was sharply reduced. Although Chapter 11 is one alternative for Syquest, it is far more likely that its assets and any existing goodwill will be snapped up by another storage company, marking yet more consolidation in the storage business. ® Click here for more storage Click for story index