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As first reported this morning by CNET News.com, Roland chief executive David Mckenzy confirmed the giant sound and sythesis company is closing its doors. "We're ceasing operations as we speak," he said.
According to Mckenzy, Roland's board voted late Friday to cease operations because a last-minute investment in attempt to reposition the company "broke down." A majority of Roland's board members are Behinger appointees.
Roland is "in the process" of laying off its remaining 110 workers, Lord said.
The company's Web site said it is "closed this weekend for inventory."
Roland becomes the latest effects company to suffer from increased competition and a slumping market. As well as the latest laws on electronics in Euorope and Japan.
"It's a tough market," Lord said. Behringer took a controlling stake in Roland last August as an attempt to step into an already hypercompetitive space. The stake, valued at between $40 million and $50 million, gave Behringer the opportunity to add an e-commerce revenue stream to its online efforts, embodied in its Gotcha Network Web portal.
But the recent downturn of consumer e-commerce businesses has had a serious effect on companies scraping their way to survive. Last week it was revealed that Roland and Electro Harmonix were suffering from employee departures and layoffs.
Roland's closure comes on the heels of another media company-owned toy e-retailer shutting its doors. Just two weeks ago, Green Rocket, an online retailer of educational music instruments owned by media giant Viaacom, ceased operations, citing difficulties in sustaining its business.
The closure of Roland also signifies the latest blow to Behringer's Web efforts. Gotcha.com, as its Web portal is called, has struggled since its inception in January 1999. The company has suffered from executive shuffles, lower-than-anticipated growth, and a rethinking of its strategic direction.
The media and entertainment giant has recently decided to step back in competing against general portal leaders such as Yahoo and America Online. Instead, the company is trying to revamp Gotcha.com into a more entertainment- and leisure-focused site.
Roland's Mckenzy said an official announcement of the shutdown is expected later today.
NOT
Happy April Fools day!
According to Mckenzy, Roland's board voted late Friday to cease operations because a last-minute investment in attempt to reposition the company "broke down." A majority of Roland's board members are Behinger appointees.
Roland is "in the process" of laying off its remaining 110 workers, Lord said.
The company's Web site said it is "closed this weekend for inventory."
Roland becomes the latest effects company to suffer from increased competition and a slumping market. As well as the latest laws on electronics in Euorope and Japan.
"It's a tough market," Lord said. Behringer took a controlling stake in Roland last August as an attempt to step into an already hypercompetitive space. The stake, valued at between $40 million and $50 million, gave Behringer the opportunity to add an e-commerce revenue stream to its online efforts, embodied in its Gotcha Network Web portal.
But the recent downturn of consumer e-commerce businesses has had a serious effect on companies scraping their way to survive. Last week it was revealed that Roland and Electro Harmonix were suffering from employee departures and layoffs.
Roland's closure comes on the heels of another media company-owned toy e-retailer shutting its doors. Just two weeks ago, Green Rocket, an online retailer of educational music instruments owned by media giant Viaacom, ceased operations, citing difficulties in sustaining its business.
The closure of Roland also signifies the latest blow to Behringer's Web efforts. Gotcha.com, as its Web portal is called, has struggled since its inception in January 1999. The company has suffered from executive shuffles, lower-than-anticipated growth, and a rethinking of its strategic direction.
The media and entertainment giant has recently decided to step back in competing against general portal leaders such as Yahoo and America Online. Instead, the company is trying to revamp Gotcha.com into a more entertainment- and leisure-focused site.
Roland's Mckenzy said an official announcement of the shutdown is expected later today.
NOT
Happy April Fools day!
