Hayes (Nasdaq:HAYZ), once the dominant maker of PC modems, filed for Chapter 11 early last October after it reported a net loss of $14.2 million.
It has struggled to compete against 3Com Corp. (Nasdaq:COMS) and other players in what has become a difficult market.
But Nigel Croisdale, vice president of Hayes International, strenuously denied U.S. reports that Hayes has gone into liquidation. Croisdale told ZDNet UK News that the company had shut down its U.S. factories but remained in Chapter 11, protected from its creditors.
Not dead yet
"The U.S. reports are wrong: We're still here," said Croisdale, adding that he had been in conference calls with American colleagues all day. "What is true is that we have gone through a significant downsizing exercise in the U.S., which has resulted in significant job losses, but we do have our core team."
Still, Alan Adamson, a product manager at Hayes in the U.S., said that Hayes in the U.S. had "ceased operations."
Indeed, despite Croisdale's denials, one analyst said Hayes' end was near.
"They have been struggling for quite a long time," says Stephen Baker, an analyst at PC Data in Reston, Va. "It comes as no surprise that they are going under."
Baker said that the modem market was a tough place to make money, and said 3Com, Diamond Multimedia Inc. (Nasdaq:DIMD) and Zoom Telephonics Inc. were swallowing Hayes' market share.
UK group solvent
But Croisdale -- based in England -- says the UK division is both profitable and solvent and says he expects the company will be bought before the inevitable.
"We are very strong in the UK and do not rely on the U.S. for products or financing. We are autonomous and I can confirm that as far as we are concerned, in the UK we are actively talking to a number of parties interested in buying Hayes."
He did not name potential suitors.
More details to follow.
PC Week's Anne Knowles contributed to this story.