News

KioskCom award nominee files for Chapter 11

March 20, 2003

BELLEVUE, Wash. -- Fullplay Media Systems, a digital media company that was deep in debt despite reports of ever-higher sales, filed for Chapter 11 bankruptcy protection on March 19, according to a report in the Seattle Times.

According to the Times, Dennis Tevlin, the company's chief executive, said Fullplay is still in business and working on a customer deal with retailer Best Buy. He said Fullplay plans to submit a reorganization plan soon.

The company has lost money for several years and by the end of September had a $12.5 million deficit, according to documents filed with the Securities and Exchange Commission.

Fullplay said in government filings in November that it only had enough cash to last a few more months.

The grim message contrasted with the company's forecasts of continued growth. Fullplay said its sales reached a record high of $3.2 million for the quarter ended Sept. 30; it predicted fourth-quarter sales would top $6 million.

Fullplay's primary product is a multimedia kiosk that can be used to preview compact discs, DVDs and video games. The kiosk is a nominee for the 2003 KioskCom awards in Las Vegas next month, in the Best Hospitality/Entertainment Kiosk Application category. (See related story Finalists selected for KioskCom awards)

In April, the company signed a contract to sell 16,000 stations to Trans World Entertainment, a mall-based music retailer.