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MPC files for bankruptcy.

NAMPA, ID--MPC Corp. (mpccorp.com), one of the world's largest PC makers, has filed for Chapter 11 bankruptcy protection. The company has been delisted from the NYSE and says it doesn't expect equity holders to receive any distributions in conjunction with the bankruptcy cases.

MPC has played in the corporate and government PC space for 17 years. In October 2007, it purchased the professional business unit of Gateway. That acquisition may have been the root of MPC's downfall, however.

In a statement, chief executive John Yeros blamed "unforeseen issues surrounding the integration of the Gateway Professional business unit, combined with adapting the operations of our manufacturing partner to additional customized requirements have proven more challenging than originally anticipated, and have contributed to extensive losses. We evaluated all strategic alternatives, and concluded the filing was necessary this time."

MPC outsourced production to Flextronics (flextronics.com), but the latter terminated the deal in mid November, according to a report in the Sioux City Journal.

The company has laid off more than 400 workers in the past month, including more than 300 in mid November and has "only a few employees left" at its Nampa site, according to published reports.

However, Yeros added company's operations are expected to continue during reorganization efforts.
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Title Annotation:Industry NEWS
Author:Buetow, Mike
Publication:Circuits Assembly
Date:Dec 1, 2008
Words:209
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