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Thread: Cendyne SHUTS IT DOORS - OUT OF BUSINESS

  1. #1
    L13 Sergeant Cpaladin's Avatar
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    Cendyne SHUTS IT DOORS - OUT OF BUSINESS

    I'll post this here and HOPE people see it, since the last time I posted a message about this elsewhere it got moved here. As an FYI to spoofee, I only posted it in the hot deals forum that time since far fewer people read this area and it was important info. This time it's really important, and hopefully the deal posters will see this and not post any future hot deals involving cendyne.


    Ruling forces CenDyne to shut offices
    Judge orders computer DVD drive maker to pay creditor Test Rite, which took over operations, $20 million.

    By TAMARA CHUANG
    The Orange County Register


    SANTA ANA - CenDyne Inc. was forced to shut down Monday after a state judge ruled that it had to repay a Taiwanese creditor more than $20 million.

    CenDyne, one of the biggest brands in computer DVD drives, already was reeling from mounting losses and top-level resignations.

    For the first six months this year, CenDyne lost $17.5 million, which spurred the lawsuit from Test Rite International, the Taiwanese investor that provided CenDyne with inventory and services. Test Rite seized control of the company two weeks ago.

    On Thursday, California Superior Court Judge Robert H. Gallivan ordered CenDyne to pay its creditors and appointed Robb Evans & Associates as receiver.

    "We're trying to liquidate the assets of the company for the benefit of the creditors," said Brick Kane, chief operating officer at Robb Evans.

    CenDyne's Susan Street offices were somber Monday as employees learned the news. A security guard sat outside to inform those who had not heard. CenDyne employed 72 people.

    Gavin McCalla, CenDyne's chief executive officer, and Bob Miles, CenDyne's chief financial officer, did not return calls seeking comment Monday.

    McCalla and Miles are also CEO and CFO at the U.S. division of Test Rite. Test Rite, which provides packaging, design and logistics to retailers, invested $4.5 million in CenDyne last summer, gaining 42 percent of the company, said Test Rite.

    Test Rite, based locally in Ontario, took control of the privately held CenDyne after founders Ed Meadows, Mo Vahdati and Dean Vahdati, abruptly resigned.

    Test Rite's lawsuit alleged that the trio made false statements "with the intent to defraud and deceive" Test Rite in order to attract investment.

    Test Rite said it had discovered in November that CenDyne had doled out $2.4 million in "secret" consumer rebates and price guarantees to retailers, which caused CenDyne to restate its financial reports.

    Another $2.8 million in rebates was discovered in July, the lawsuit says.

    The lawsuit alleged that CenDyne owed Test Rite $22.7 million for the purchase of goods, rebate liabilities and short-term liabilities.

    Test Rite's lawyers did not return calls.

    Meadows, CenDyne's former president, and Mo Vahdati, former chief executive, did not return calls. Dean Vahdati could not be reached for comment.

    Test Rite says it has suffered from its investment in CenDyne.

    On July 29, JP Morgan downgraded Test Rite's stock to "underweight" from "overweight" and lowered its earnings estimate by 29 percent because of "significantly worse results at CenDyne versus our original forecast." CenDyne's losses had hit $17.5 million for the first half of the year, and more losses were revealed to Test Rite in July, the lawsuit said.

    Last year, CenDyne was the leading brand in computer DVD drives sold at retail, according to The NPD Group.

    It captured 17.7 percent of the market, significantly ahead of second-place I/OMagic Corp., at 10 percent, and Sony Corp., at 7.8 percent.

    In the first six months of this year, CenDyne dropped to second place, at 13.7 percent, while Sony moved to the lead with 20.5 percent.

    "It's a healthy industry, but the industry is competitive," said Tom Edwards, senior industry analyst for NPD.

    "It's an industry that, as I've said for 25 years, it eats its young. If CenDyne leaves, somebody else will step in."

    BY Choochoojr: I deleted the posted link, it links to a page you have to be a member to read.

  2. #2
    L13 Sergeant Cpaladin's Avatar
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    The registration is 100% free. Hell you can use a junk yahoo.com email, a false name and false zip, and false everything to join. It requires no more membership than is asked of anyone who creates a user account at spoofee.com.

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    L6 Recruit JKLiMpKoRn's Avatar
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    Quote Originally Posted by Cpaladin
    The registration is 100% free. Hell you can use a junk yahoo.com email, a false name and false zip, and false everything to join. It requires no more membership than is asked of anyone who creates a user account at spoofee.com.
    registration for what? i may have missed the point of this

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    L13 Sergeant Cpaladin's Avatar
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    Read choochoo's very fine print at the end. Originally there was a link to the article, in case anyone wanted to question the validity of the information, but in order to read the article at the link the webpage required one to register, for free.

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    L13 Sergeant x_OoO_x's Avatar
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    that SUCKS, i hate groups and people trying to sue... people like the RIAA suck... SUCK HARD bleh!!
    -I|I- Satisfaction Lies within the Effort -I|I-

  6. #6
    L13 Sergeant Cpaladin's Avatar
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    Rebate: $20.00 Rebate Check
    Rebate Information For: Promotion: Up to $30 Mail in Rebate on Select Cendyne Products (OfficeMax only)
    Submission Type: MAIL
    Date Received: 06-19-2003
    Status: Reward Fulfilled
    Check Number:
    Check Issue Date: 08-22-2003 (Please allow 10-15 days for delivery)
    Status Detail: Your rebate is valid. Please allow 10 to 15 days for delivery. Thank you.


    Apparantly Parago still has money in it's cendyne account to use for paying rebates or something, cause obviously 8/22 is after the date they shut down.

  7. #7
    L25 Major Erik's Avatar
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    CenDyne is going out of business? Wow, this is huge. I also moved the topic to a more appropriate place.

    Never mind that, I don't have mod here to move it to the off topic section.

  8. #8
    L13 Sergeant Cpaladin's Avatar
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    This involves rebates and rebate tracking, think this is a fine place?

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    L14 Officer lap1314134's Avatar
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    the hell...does tat mean i won't get my previous rebates? no wonder the rebates i submitted in june still haven't return...is tat gonna be how it is? damn!!
    If your left leg is Thanksgiving and your right leg is Christmas, can I meet you in between the holidays?

  10. #10
    L2 Member jebc13's Avatar
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    I had a $20 Cendyne rebate that rebatesHQ showed received on 6/27/03 and that it was valid as of yesterday(8/26/03). I looked today and it now shows that it is invalid. Has this happened to anyone else and is there anything I can do?

    Edit: Check out this link http://www.businessweek.com/technolo...es/5066675.htm

    Looks like they will not be honoring rebates.

  11. #11
    L13 Sergeant Cpaladin's Avatar
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    People are being told by reps from OM that officemax insteads to honor the rebates instead. This is speculation at this time, not a statement of 100% fact, just what some folks are being told. Further, in what manner they intend to honor them, if they do, is also unknown, probably a giftcheck but who knows really.

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