Comdisco Seeks Bankruptcy Protection

Comdisco Inc., still hurting from last year’s technology stock crash, said Monday that it is filing for Chapter 11 bankruptcy protection, is selling its technology services business to Hewlett-Packard Co. for $610 million and cutting 200 more jobs.

The firm also said it has obtained $600 million in financing commitments as part of its overhaul.

Comdisco said it and 50 U.S. subsidiaries filed in federal court in Chicago for Chapter 11, from which it hopes to emerge early next year.

Comdisco, based in the Chicago suburb of Rosemont, Ill., leases computer, medical, telecommunications and other high-tech equipment. It also provides backup security for corporate computer systems and has a venture capital arm.

Comdisco had $3.87 billion in revenue last year, but it took a critical hit in the high-tech downturn because of its investments in Internet-related start-ups.

Comdisco’s stock plummeted more than 98%, after hitting its all-time high of $57.25 on the New York Stock Exchange on March 10, 2000. On Monday, its shares sank 49 cents to close at $1.06.

The drastic restructuring moves were made by Norm Blake, who took over as chairman and chief executive four months ago after an eight-month tenure as chief executive of the U.S. Olympic Committee.

Blake said his vision for the company “includes the thorough assessment and completion of strategic divestitures and the quick reorganization of our remaining business units in order to promptly emerge from Chapter 11 early next year.”

Additional moves include the possible sale of some of its leasing assets, the company said.