From TheMayReport:
VENTUREWIRE --- Wednesday, June 6, 2001
Entire Contents Copyright 2001 by Technologic Partners
VentureWire is a Service Mark of Technologic Partners
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o CEO Of Comdisco Ventures Resigns As Unit Winds Down
ROSEMONT, Ill. (VENTUREWIRE) -- James P. Labe, the CEO of Comdisco
Ventures, has resigned, as the troubled company's venture capital unit
apparently winds down, VentureWire has learned. A spokesperson for the
Rosemont, Ill.-based parent company confirmed that Mr. Labe left within the
last month, as well as earlier reports of layoffs within Comdisco Ventures.
Mr. Labe, who served with Equitec Financial Group before joining Comdisco,
founded Comdisco Ventures in 1987. His resignation comes as the parent
technology services firm is undergoing a large restructuring, including
layoffs of up to 10% of its North American workforce, and has retained
McKinsey & Co. and Goldman Sachs to help it evaluate its future. Most of
those layoffs have occurred at its corporate headquarters. Comdisco also
cut 15% of Comdisco Ventures' staff, which was first reported by the
Chicago Tribune. The venture unit stopped making new investments in
January. When contacted, Comdisco Ventures said it was focused on its
current portfolio and declined to comment further, saying it would be
“inappropriate” to do so. Comdisco at one time considered issuing a
separate tracking stock for its venture unit, which began as a lease
financing arm but moved heavily into venture capital investing in recent
years. Comdisco reported an operating loss of $8 million and a net loss of
$54 million for its second quarter. It also had to write off several
investments from the venture unit. “We believe the charges taken with
respect to Comdisco Ventures were necessary given the recent and rapid
decline in the economic environment for venture capital-backed companies,”
the company said in a statement last month. Comdisco Ventures portfolio
companies include Everypath, a San Jose, Calif. company that provides a
mobile application platform; Homes.com, a Menlo Park, Calif.-based provider
of marketing and productivity applications for real estate companies that
filed for Chapter 11 bankruptcy protection in March; Mobilocity, a New
York-based professional services firm focused on remote computing; Optical
Solutions, a Minneapolis provider of fiber optic voice, video, and data
technology; and Pirus Networks, an Acton, Mass.-based IP storage networking
company. |
