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Article

Verari Close to Death

There’s a deathwatch being kept at the bedside of the skeletal remains of Verari Systems
By Maureen O'Gara
Article Rating:
December 16, 2009 07:30 AM EST
Reads:
 1,756

Venture Capital on Ulitzer

There’s a deathwatch being kept at the bedside of the skeletal remains of Verari Systems, some paid, some not.

Unable to meet payroll, the blade-cum-storage and container boutique has fired almost all of its reportedly ~225-strong staff including co-founder and CTO David Driggers – 125 of them can currently be found at a VerariAlumni.com networking site that one of them set up – and the remaining management has posted a “State of the Business” message on the company’s homepage saying it’s restructuring.

It reads, “Verari has initiated a process that will protect our customers’ investment and benefit our creditors as we restructure the business. The intention is to safeguard customers’ investment and provide an ongoing support capability. There are several options that are being considered to provide solutions to our customers. We expect to have the new plan in place soon.”

What that might be is anybody’s guess. They’ve reportedly been trying to flog the place off for some time. And there’s a report from the blogosphere that five companies will bid on the assets by January 15

Verari CEO David Wright blames the credit crunch. The remaining crew is reportedly trying to fill existing orders, supposedly worth millions of dollars.

Verari customers include Virgin America, Morgan Stanley, Akamai, Microsoft, Qualcomm, EMC, Petrobras, Lockheed Martin and Northrop Grumman.

The company has raised something like $80 million over the years from such as the chi-chi Carlyle Venture Partners, Celerity Partner, Voyager Capital and Sierra Ventures.

More info here.

Published December 16, 2009 – Reads 1,756
Copyright © 2009 Ulitzer, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

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