Russound tried to save Colorado vNet when it purchased its assets back in 2009. Apparently the turnaround of the company, combined with the struggling economy, were too much, and now Colorado vNet is officially “winding down” operations to focus on R&D and reallocating intellectual property elsewhere.
The announcement was made by the CEO of Colorado vNet Corp., Charlie Porritt.
“Colorado vNet has a great reputation in the marketplace, but as the needs of the market shift in tandem with a challenging economy, we need to take a long, hard look at the profit potential of the current product line in relation to the income it generates,” Porritt said in the company’s official statement.
In October 2009, Colorado vNet Corp. purchased the assets of L & B LLC (previously known as Colorado vNet LLC) after the company had effectively ceased operations.
Colorado vNet Corp. will honor all warranties on products that were purchased on or since October 15, 2009 for a limited period of time. Technical support for Colorado vNet will be available by telephone through April 30, 2011. Products purchased prior the acquisition from L & B LLC are not covered.
Earlier this year, Colorado vNet Corp. announced to dealers that a newly updated RF lighting system would be made available to those who need to replace a faulty system that dates back to 2008, nearly two years prior to the acquisition. Colorado vNet Corp. will honor its commitment to the dealers to replace these products . All exchanges are expected to be completed by March 31, 2011.
According to VP of sales and marketing Petro Shimonishi, “the majority” of Colorado vNet employees will be affected by this decision though she would not offer specifics. The move, she said, will, however, have no “direct or indirect” effect on Russound, which is Colorado vNet’s parent company. Shimonishi estimated that approximately 450 dealers would be affected by the decision.
Russound will be exhibiting in Hilton Suite 2330 at CES in Las Vegas next week.