Comdex faces Chapter 11 threat
With two days to go before the annual Comdex trade show gets underway in Las Vegas, its promoter warned it may have to file for chapter 11 bankruptcy protection.
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Key3Media, Comdex’s parent company, made a loss of $21m (£16m) last year and things are looking worse this year as the technology sector still lies in the doldrums.
In a statement of its third quarter earnings the company said it ‘cannot continue to operate its businesses in the near term under its existing capital structure’ and was looking at other alternative such as restructuring, merger or sale of the company.
The company will look into may have to file for Chapter 11 after its annual show as part of a ‘structured process’.
‘Key3Media’s board believes this process represents the best alternative in these difficult times for preserving the value of its brands and businesses for its stakeholders and maintaining continuity of services to its exhibitor and attendee clients,’ the statement said.
Last year attendance of the show fell dramatically to 125,000 following the 11 September attacks, two years ago as many as 200,000 people visited the show despite many big names not making an appearance.