CenDyne, Inc. Forced to Shut Down

[tumbar]

CenDyne Inc. was forced to shut down Monday after a state judge ruled that it had to repay a Taiwanese creditor more than $20 million."

"CenDyne had doled out $2.4 million in "secret" consumer rebates and price guarantees to retailers, which caused CenDyne to restate its financial reports." [OCRegister]

http://www2.ocregister.com/ocrweb/ocr/search.html?ul=&ps=20&np=0&q=cendyne

[tumbar]

Wednesday, August 20, 2003
Today's Orange County business briefs


CenDyne forced to sell inventory at deep discounts

Santa Ana-based CenDyne Inc., which shut down Monday after disagreements between the founders and a major investor, will sell off its remaining computer DVD drives, CD burners and other computer equipment at deep discounts, according to the court-appointed receiver, who is liquidating assets to pay off creditors.

However, no products will come with a warranty or mail-in rebate, which was a point of contention between the founders and investors. Taiwan-based Test Rite International, which owns at least 42 percent of CenDyne, sued the company last month for failing to disclose the "secret" rebates. About $5 million in rebates was not disclosed.

A state judge ruled Thursday that CenDyne must repay Test Rite, forcing CenDyne to shut down Monday. CenDyne also handled the sales of Verbatim optical drives. Customers waiting on outstanding rebates should check www. cendyne.com for updates.

[subclubkid]

Anyone have any idea when they will be marking down all their prices, or where I could find some when they do. It sucks they are going out of business, but being able to pick up a DVD burner for cheap would be nice.

[NightWing]

Intersting. Dosesnt Fry's and Compusa have a lot of their products? Not sure.

Was looking at their little FM rebroadcaster. Better run and grab one! Else got to build one.

[gcutler]

Only problem is Warranty, after "In Store Return" has passed (like 30 days) you will be out of luck. My 104 is out of warranty so no big deal, but if my 105 (with 4 months left on warranty) breaks, I'm S.O.L. unless someone buys Cendyne and the Warranties are accepted.

[NightWing]

From the info does not look like anyone will grab them since I think the main investor was the one who pulled the plug.

Be nice if I could find a local place selling one of those FM rebroadcaster they had. Else got to build one.

Good luck and hope it does not break!

[That_Kid]

At my local staples I ended up grabbing a cendyne 105 for 110 dollars. Not sure if it had to do with this at all but pretty damn cheap anyway.

[freestyler]

Cendyne 105? Is this a Pioneer AO5 OEM ?

[gcutler]

Yes it is the same hardware. So at least thru Pioneer, the firmware will be updated. But all warranties and unfulfilled rebates for Cendyne label are effectively null and void.

[mol3000]

has any of their things went on sale yet because i havent seen anything in the paper

[macleod]

Yes it is the same hardware. So at least thru Pioneer, the firmware will be updated. But all warranties and unfulfilled rebates for Cendyne label are effectively null and void.

That may not be entirely true. I JUST received a rebate for a modem that was paid by officemax. In the tear off section it references the fact that cendyne has went into receivorship, however, officemax has decided to honor the rebate and pay it on behalf of cendyne.

I dont know how this will be for other companies, but it looks like officemax is stepping up to the plate. All I can say is, UNBELIEVABLE.

[gcutler]

That may not be entirely true. I JUST received a rebate for a modem that was paid by officemax. In the tear off section it references the fact that cendyne has went into receivorship, however, officemax has decided to honor the rebate and pay it on behalf of cendyne.

I dont know how this will be for other companies, but it looks like officemax is stepping up to the plate. All I can say is, UNBELIEVABLE.

That is totally COOL!!!, but can't assume it will be the norm. Until validated from each retailer, assume the rebate is null. Blood pressure will be probably stay lower with that assumption... Although Officemax gets + several points for good will on their move...

[JSB]

Yes it is the same hardware.

So does Pioneer have another supplier for their drives?
Does CenDyne make drive for others?

JSB

[NightWing]

Actualy Pioneer was making drive for them or should say rebadging of there drive for CenDyne.

CenDyne bought stuff and rebadged like the FM tranmitter for mp3 players etc.

[gcutler]

So does Pioneer have another supplier for their drives?
Does CenDyne make drive for others?

Cendyne never made the Pioneer drives, Cendyne was just "lower margin" bulk reseller of the Pioneer (and other brand) drives [get them geatly reduced in cost from pioneer because they bought so many and sell them with minimal SW and just about no tech support, and you can sell it real cheap, but for how long before going bankrupt]