Spectrum Seeks Bankruptcy Court Protection
NEW YORK (AP) _ Spectrum Information Technologies Inc., the wireless technology firm headed briefly last year by former Apple Computer Inc. chief John Sculley, on Thursday filed for federal bankruptcy court protection.
The company had been beset by financial and legal troubles before and since Sculley’s brief tenure, which ended about a year ago. Spectrum president Peter Caserta left a short time later under the cloud of a federal investigation.
Last month, the company hired a new chief executive officer, Donald Amoruso, a former United Technologies Corp. executive and management consultant. Spectrum’s board of directors was also replaced with outsiders.
``Many outside observers of this company will say that Chapter 11 is the final chapter in the Spectrum saga,″ Amoruso said. ``However ... this action will enable us to put the company’s previous troubles behind us.″
He said the new managers and directors would move to halt Spectrum’s losses, which amounted to $5.5 million for the six months ended Sept. 30, the first half of its fiscal year. Sales were $52 million in the period.
Spectrum will eliminate jobs, trim expenses and seek to settle shareholder lawsuit during the bankruptcy process. The company said it had closed its Computer Bay subsidiary, a franchiser of personal computer resellers.
The filing was made in the U.S. Bankruptcy Court for the Eastern District of New York in Brooklyn.
The Manhasset, N.Y.-based company drew attention in October 1993 when it hired Sculley as chairman and CEO. But Sculley resigned in February 1994, saying Caserta misled him about the company’s financial condition and internal problems, including an investigation by the Securities and Exchange Commission.
Spectrum holds a number of patents for the transmission of data over wireless networks.