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| APS Files Chapter 11, Hopes to Emerge Soon
Storage vendor, Macintosh clone maker, and long-time TidBITS sponsor APS this week filed for protection of assets under Chapter 11 of the U.S. Bankruptcy Code while the company undergoes reorganization. Company officials believe that APS is still a viable business and expect to emerge from Chapter 11 in a few months. No massive layoffs are planned, and business will continue apace. APS Vice President Paul McGraw said, "If you choose to call, you'll find that business will be pretty much as usual. Our employees will be paid, our customers will receive their products, and we'll continue to do our best to provide the best support available anywhere." Two events, the unexpected November 1997 bankruptcy and liquidation of hard drive manufacturer Micropolis Corporation and Apple Computer's decision to stop licensing the Mac OS, were at the heart of the problems of the otherwise-profitable company. After Micropolis went belly-up, APS spent millions of dollars fulfilling Micropolis's warranty responsibilities on hundreds of thousands of drives. Similarly, Apple's elimination of the clone vendors left APS with millions of dollars in product inventory and wasted marketing costs. We wish APS the best of luck in recovering from these setbacks.
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