Escom to file for bankruptcy

Embattled German PC assembler and retailer Escom is filing for bankruptcy proceedings, the company has announced.

Embattled German PC assembler and retailer Escom is filing for bankruptcy proceedings, the company has announced.

Escom's court-appointed receiver says that it would not be possible to reach an agreement with creditors, after weekend discussions over a rescue plan for the financially troubled company failed. Escom is declining further comment after issuing a brief statement.

The company's recent claim to fame on an international front was its attempt to revive Amiga Technologies, which it bought last year for US$10 million, selling it earlier this year for US$40 million.

Escom has blamed its financial situation on higher-than-expected startup costs for the 200 Rumbelows retail outlets that the company acquired in the UK last year, instantly making it one of the biggest computer retailers in the country.

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