Distributed Logic Corp., a struggling computer peripherals company in Irvine, confirmed Friday that it has liquidated its two subsidiaries in Great Britain.
The subsidiaries--Dialog Computer Systems Ltd. and Dialog Computer Products Group--went into receivership April 21 after the company failed to find a buyer for them. The units were acquired in 1987 from Plessey U.K. Ltd., together with Plessey’s subsidiaries in Canada and Irvine.
Dialog Computer Systems is an inactive company, while Dialog Computer Products, which has about 25 employees, assembled some computer peripheral devices and marketed the company’s products in Great Britain.
“The U.K. financial condition is very depressed. Our sales volume was declining to a point that it wasn’t a profitable operation,” said Henry Baker, Distributed Logic’s controller.
Baker added that the company’s top executives are discussing a restructuring plan and that, in the past few months, the company has sought a merger partner.
In March, its chief financial officer, Thomas R. Anderson, said Distributed Logic could be forced to file for reorganization under federal bankruptcy laws if its creditors grow weary of waiting for it to recover its financial health. Earlier this month, the company’s unsecured creditors, who are owed a combined $5.5 million, agreed to extend the period for the company’s debt payments.
Distributed Logic, which has operations in Canada and Switzerland, now employs about 100 worldwide. In the past six months, Baker said, the company has laid off about 25 workers in Irvine.
Distributed Logic reported a loss of $4.4 million for its fiscal year ended Oct. 31. That compares to a loss of $5.7 million the previous year. Its revenue fell 35% to $29.4 million from $44.9 million.