Retail Pro, Page-Digital File for Bankruptcy Update
It has been brought to my attention that there are a few inaccuracies in our original blog on this subject that I would like to amend/correct as follows:
Retail Pro product sales have not in fact been declining over the past several years, nor have their annual maintenance renewals. Further review of the of the documents filed with the United States Bankruptcy Court in the District of Delaware, reveals that Retail Pro revenues have in fact increased over the recent past.
Also disclosed in public filings the Retail Pro source code is owned by Intuit and is not released to any third party for development or maintenance of the product. Retail Pro continues to develop, support and maintain its products exclusively.
To elaborate on the SEC filing on September 5, 2008 the Settlement resolves the SEC investigation into the Company’s financial condition, results of operations, accounting policies and procedures, internal controls, and internal revenue recognition investigation relating to the timing of revenue recognition for certain transactions during the fiscal years ended March 31, 2003, 2004 and 2005. “The Company settled the Lawsuit by consenting to entry of a permanent injunction in the United States District Court for the Southern District of California against future violations of the antifraud, reporting, recordkeeping, and internal control provisions of the Securities Exchange Act of 1934 (the “Settlement”). The Company entered into the Settlement without admitting or denying the allegations, and was not required to pay any civil penalty, fine, or monetary damages as part of the Settlement.”
Additionally, an Asset Purchase Agreement was submitted to the courts at the time of filing for protection under Chapter 11 of the United States Bankruptcy Code, demonstrating that Retail Pro will regroup. In these tough economic times we hope that Retail Pro’s restructuring under the protection of Chapter 11 will allow them to emerge stronger and better than ever.
Paul Sobota is vice president of F. Curtis Barry & Company, a multichannel operations and fulfillment consulting firm with expertise in multichannel systems, warehouse, call center, inventory, and benchmarking; Learn more online at www.fcbco.com
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If sales and renewals are not on the decline…why did Retail Pro default on all those loans? Why file BK? There is more to the story than you may be privy to or willing to disclose.