StorageNetworks Lays Off Most Staff, Announces Liquidation

Struggling storage management software and service provider StorageNetworks has announced that it has failed to find a buyer and intends to liquidate the company. StorageNetworks has been going through rough times in the past year. Earlier this year, after several job cuts, the company reduced its work staff by 50 percent. In a statement, the company announced that its board of directors has approved a plan of liquidation and that almost all of the company's remaining 60 employees have been laid off. Several employees will stay on board to help the company wind down operations.

   Under the liquidation plan, StorageNetworks expects to distribute $1.60 to $1.70 a share to its current stockholders over time. Recently, the company's stock has traded around $1.44, up from $0.78 earlier this year. The company received limited interest from other companies in acquiring its assets and determined that liquidation was the best option after failing to find a buyout offer that would be worth more than the company's estimated liquidation value.

   http://www.storagenetworks.com

   http://www.storageadmin.com/articles/index.cfm?articleid=38228