Linux firm goes to the wall

...and a second lays off staff...

Two Linux companies are feeling the economic pinch with Ebiz Enterprises filing for bankruptcy protection and Lineo axing 160 staff. Arizona-based Ebiz Enterprises, which sells Linux software and hardware, filed for chapter 11 bankruptcy protection having struggled to secure further funding. Dave Shaw, CEO of Ebiz, tried to reassure shareholders in a statement saying: "Our plan is to reorganise, not liquidate." Meanwhile Utah-based Lineo, which is working on embedding the Linux operating system into set-top boxes and network routers, is cutting 60 staff while relocating another 100 to other projects the company hopes to spin off. Due to on-going funding issues Lineo cancelled its IPO plans for the beginning of this year.