SyQuest shuts down

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SyQuest Technology, Fremont, Calif., suspended operations and said it may file for bankruptcy. The move appears to signal the end of SyQuest's drive to take on Iomega Corp. in selling removable storage devices for PCs. The disk-drive maker last year announced aggressive plans to spend $30 million in 1998 to advertise its line, and it hired Bozell Worldwide, Mountain View, Calif., in February. But amid turmoil in Asia, troubles in the storage market and problems in manufacturing, SyQuest remained in the shadow of the better-known Iomega. SyQuest hasn't advertised since late summer. Bozell plans no layoffs because it already had trimmed staffing on the account. "The handwriting was on the wall," said Kathryn Lewis, senior VP-general manager at Bozell, which now is formally terminating the relationship.

Copyright November 1998, Crain Communications Inc.

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