HostLogic Shuts Its Doors, Fires Workers
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HostLogic, the Boca Raton firm that leased business software to corporate clients over the internet, shut its doors this week and fired between 40 and 45 employees, the company said.
The firm, which also laid off 25 employees in Europe and shut down its offices in Germany, Switzerland and the U.K., said it had run out of cash and was forced to close operations. HostLogic was one of a handful of firms that had tried to carve a niche for itself by licensing and redistributing software over the internet. The company had a partnership with German accounting software giant SAP.
The news came Wednesday from the company's president, Chris Terry, who said HostLogic had been actively looking for a cash infusion of approximately $40 million but to no avail.
In 1999, HostLogic received a $4.5 million investment from a group of investors that included Virginia-based internet service provider and hosting agent PSINet.com. The company raised $5 million more from Swiss investors and it generated $1 million in revenue that year and in 2000.
But costs began to mount for the company just as investors began to turn their backs on dot.com ventures. As of Thursday afternoon the company's servers and website were no longer functioning.