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Commodore International is close to folding. The Dutch company that
owns the brand was declared bankrupt this week, but a spokesman said it
will appeal the court order.
The original Commodore International, an American company best known
for the legendary Commodore 64 computer in the 1980s, declared
bankruptcy in 1994. However, the brand refused to die.
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German retailer Escom paid $14m for Commodore International and the
brand was then taken over by Tulip Computers in the Netherlands. In
2004, Tulip sold the Commodore name to another Dutch firm, Yeahronimo.
In the past three years the company has tried to capitalise on the
Commodore brand with new products such as joysticks, gaming and video
players.
While Commodore is listed on the US over-the-counter market, most
operations are carried out from the Netherlands. After disappointing
sales of its ambitious Gravel line of personal media players, the firm
shed many employees in recent months.
Unsurprisingly, Commodore expects its figures for FY 2007 to be
substantially lower than previously estimated. Commodore is expected to
announce a €10m loss at a shareholders" meeting in Amsterdam next
Friday.
More trouble lies ahead. Former employees have threatened Commodore
with a lawsuit to secure back-payments. And last month Commodore lost a
court case
against a former partner called Phillar. That company, which was to
develop a navigation tool with Commodore, was poorly paid and says it
will now seek €9m in damages.
At least three Dutch creditors are demanding an undisclosed sum from
Commodore. They went to the bankruptcy court this week in an effort to
recoup the debt. Commodore says it wasn"t consulted when bankruptcy was
filed and will seek a solution. Official receiver JJ Dingemans told The Register that if Commodore can pay its creditors, he will advise the court to lift Commodore"s litigation.
Commodore claims its daily operations are not affected by the legal
battle. Its branding company has no personnel. Other activities, such
as gaming PCs, are run from different companies.
Tomorrow, a Commodore Day is held in the Netherlands, but to remember Commodore"s golden past, not its recent demise
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