Osborne Closes Its Doors, Will Be Liquidated

Osborne Computer, whose quicksilver success was more than matched by its breathtaking descent, has ceased operations and will be liquidated, its creditors said Wednesday.

Osborne’s official creditors’ committee said it had asked the bankruptcy court to declare the Fremont, Calif., company in default of the terms of its Chapter 11 reorganization.

A liquidation trustee, Jerome E. Robertson, was appointed Jan. 31 to oversee the sale of the company’s inventory and assets.

Edward Jellen, attorney for the creditors’ group, said recent efforts to raise additional money for the company had been unsuccessful. However, he said officers of the company, including President Ronald J. Brown, were continuing those efforts, despite the liquidation. Brown was not available for comment.

Osborne Computer was formed in 1981 by Adam Osborne, a colorful and outspoken entrepreneur who relished his image as the “bad boy” of the computer industry.

The Osborne 1 was the first portable computer, and it sold like hot cakes. The company counted more than $100 million in revenue in its second year.

But, four months later, in September, 1983, it sought bankruptcy court protection, reporting debts of more than $30 million.

Its reorganization plan was approved in August, 1984, and since then the company has been primarily a distributor for computer products made by other companies but bearing its name.