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Quantegy Closes Doors Pending Restructuring - ProSoundNetwork.com

Quantegy Closes Doors Pending Restructuring

Opelika, AL (January 5, 2005)--Quantegy, the last remaining manufacturer of professional analog recording tape and the only U.S. recording tape manufacturer, ceased operations on December 31st, 2004. Some 250 factory employees were laid off, with all outside sales and support personnel also affected.
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Opelika, AL (January 5, 2005)--Quantegy, the last remaining manufacturer of professional analog recording tape and the only U.S. recording tape manufacturer, ceased operations on December 31st, 2004. Some 250 factory employees were laid off, with all outside sales and support personnel also affected.

According to a story published by the Opelika-Auburn News, plant security passwords were changed and "No Trespassing" signs were put up on the afternoon of New Year's Eve. The story also quoted a company statement: "Quantegy, Inc. has ceased operations pending restructuring. This is due to financial issues that have plagued the industry and Quantegy for some time. All employees are on lay off pending further notice."

The closure is also expected to have significant effects on Quantegy dealers, though a call center employee was brought back on Jan 4 to accept phone orders for existing inventory. Pro Sound News has been told that, despite published reports, the company has not filed for Chapter 11 bankruptcy protection, and that a restructured version of the company is expected to reopen. Customers, dealers and industry associations are also said to have offered support and assistance to Quantegy during its restructuring. Remaining Quantegy officials are thusfar unavailable for comment.