In documents presented to the US Bankruptcy Court, Frazer, Pennsylvania-based DecisionOne cited a weak economic environment, sluggish IT spending, and increased price competition as the reasons for its failure.
For the year ended December 31, 2004, DecisionOne, which provides technology support services to customers including Sun Microsystems, Sony, Nortel Networks, and Atos Origin, reported revenue of $363.3m. However, in its Chapter 11 petition, the company listed liabilities of $273m.
The company’s creditors include Cerberus Partners, which is owed approximately $74m, Franklin Mutual Advisors, PeopleSoft and AT&T. The company said business will continue as normal during the restructuring process.
DecisionOne filed for Chapter 11 in February 2000, emerging 10 months later as a private company owned by a group of investors including Goldman, Sachs & Co.
