On June 16, the company filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court Northern District of California in San Jose. Unlike a Chapter 11 filing, which allows a company to reorganize its finances and continue business operations, Chapter 7 bankruptcy results in a complete liquidation of an entity's assets.
The company, founded in November 1997, had received around $30 million from investors that included Woodside Fund, Merrill Lynch & Co. Inc., QLogic Corp. (Nasdaq: QLGC), JT Venture Partners, Credit Suisse First Boston Corp., Spring Creek Partners, and Finisar Corp. (Nasdaq: FNSR) (see TrueSAN Secures $30M in Funding).
TrueSAN was originally a hardware play, with a "SAN-in-a-can" storage system built largely out of third-party components that the company was positioning against -- refrain from laughing until the end, please -- EMC Corp.'s (NYSE: EMC) Symmetrix and its ilk. A year and a half ago, it ditched that idea and shifted to SAN management software (see TrueSAN Takes Second Shot).
After a series of layoffs last year, TrueSAN finally succumbed and shut its doors in March 2003 (or so we thought!), with founder and CEO Tom Isakovich penning a sentimental farewell memo to employees. Isakovich's departure followed a failed bid to sell the company's assets to CNT (Nasdaq: CMNT) (see TrueSAN Goes Belly-Up, TrueSAN Dishes Up Pink Slips, and TrueSAN Swings Axe).