We should have seen it coming when Fusion Garage’s public relations firm McGrath Power and law firm Quinn Emanuel abandon them last month. But never did I expect them to owe creditors $40 million.
Company founder Chandresekar Rathakrishnan apparently signed the liquidation documents on 5 January 2012. Maybe they are hoping that we won’t notice it as all the tech media are busy covering CES.
According to Straits Times, Fusion Garage shareholders include Ernst & Young partner Choo Eng Chuan and The Hour Glass executive chairman Henry Tay Yun Chwan. The company had an investment of tens of millions of dollars from Malaysian mobile device maker CSL and other private investors.
Right now, it is unsure how many people pre-ordered the Grid 10 tablet. (The Grid 4 Smartphone wasn’t even launched) But these customers are most likely not getting their money back. Those who have gotten their Grid 10 can be sure that there won’t be any future support for their device.
And it is also unsure what’s going to happen to the lawsuit with TechCrunch.
This is not the first time Chandra failed. His first startup, Radix, folded in 2007 and some of their employees moved over to Fusion Garage. Radix was trying to make software system that allows mobile phones run programs meant for computers.
Now there’s rumors that Chandra is starting a new company and some Fusion Garage employees are joining the new company. Let’s hope this is not true. Don’t want to see a Trilogy here.
PS: Don’t get me wrong. I have nothing against entrepreneurs failing. Failing is part of entrepreneurship and I think entrepreneurs should not be afraid of failing. But I’m pissed off with the things Fusion Garage did with TechCrunch. It just bring a bad name to the local entrepreneurship scene.