Retail Pro (formerly Island Pacific), vendor of retail solutions for some of the country's largest retailers, and its wholly owned subsidiaries, Page Digital, IP Retail Technologies International, and Sabica Ventures, entered into Chapter 11 bankruptcy on Jan. 10, reports Multichannel Merchant magazine.
Retail Pro has been hit over the past several years by declining sales and dwindling annual maintenance renewals. In addition, last September the Securities and Exchange Commission filed securities fraud charges against the company and two of its former CEOs, as well as a former chief financial officer, for their alleged roles in an accounting fraud scheme designed to inflate Island Pacific's revenues.
Some of its customers have taken on further development and maintenance of the product internally or through the use of third-party vendors -- some of which are former Retail Pro software designers and developers.
Whether Retail Pro will be able to regroup under the protection of Chapter 11, and whether investors or another company will acquire it, remains to be seen, says the magazine.
Wednesday, January 21, 2009
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