Genisco Moves Headquarters to Anaheim

Genisco Technology Corp., a maker of computer workstations for use in factories and other rugged environments, said Wednesday that it has moved 175 employees and its headquarters from La Mirada to Anaheim.

Phillip C. Friedman, Genisco’s chairman and chief executive, said the company moved its headquarters staff and its Solaris Systems Division to a smaller building in Anaheim as part of a move to reduce corporate spending.

The company also moved a production division from La Mirada to San Diego and set up a manufacturing plant in Tijuana, Mexico, Friedman said. He said a “small number” of production employees were laid off and 75 others were moved to San Diego.

“The land costs are high in Orange County, but the rental environment is favorable,” he said. “This will save on costs for us.”

Friedman said the move to Orange County was made during the past quarter. After the move, the company’s landlord filed an $11-million lawsuit against Genisco in Los Angeles Superior Court alleging that Genisco breached its lease and caused environmental damage to the property in La Mirada.

Friedman said the company denied the charges and filed a countersuit against the landlord. He said the firm is attempting to settle the suit and has set aside $879,000 for potential liabilities.

The company also said it restructured its $9.15 million in debt, extending a line of credit for $3.15 million until July 1, 1992, and postponing payments on a $6-million loan until July, 1991. Friedman said the company is continuing negotiations with lenders to improve its financial position.

For its fiscal 1990 year ended Sept. 30, Genisco reported a loss of $1.2 million on revenue of $28.7 million, contrasted with net income of $1.7 million on revenue of $34 million a year earlier. The loss for fiscal 1990 included a $2-million charge against earnings related to a write-down of obsolete inventory.