Hauppauge, N.Y. — Electrograph Systems, a nationwide distributor of high-end video displays, is going out of business.
In a sign of the times, the Long Island-based company said poor economic conditions and constrained access to vendor credit forced it to shut its doors after an attempt to sell the business failed.
Electrograph laid off more than half its staff this past Friday and plans to liquidate its inventory and assets. A skeleton crew will continue to ship product from the company’s four warehouses in California, Ohio and New York as the distributor winds down operations.
“We are very disappointed with this outcome,” said CEO Alan Marc Smith. “After exploring all other possible avenues for sustaining the company, including an unsuccessful sale process, our board decided this was the only path for our company.”
President Sam Taylor, a 22-year veteran of Electrograph, said he is “deeply saddened by the result of this situation,” and thanked his resellers, vendors and employees for their support.
Founded in 1982, Electrograph carries plasma and LCD displays, LCD and DLP projectors, and other specialty displays from such manufacturers as LG, Mitsubishi, NEC, Panasonic, Sharp, Viewsonic and a private label Electrograph line. The distributor also sells audio, connectivity and other complementary technologies for the consumer and commercial markets.
The company was acquired in 2005 by Caxton-Iseman Capital in partnership with Smith and Taylor, and within a year would double its revenue to $550 million with the acquisition of International Computer Graphics (ICG), a West Coast distributor of specialty displays, digital imaging peripherals and A/V presentation products.
At its height Electrograph maintained 10 distribution centers and 16 sales offices across the country, and carried an expansive private label line of RevolutionHD of plasma displays. Smith had said the company’s goal was to become a billion-dollar business.
The company’s Web site at www.electrograph.com will remain operational during the wind-down period to advertise promotional offerings and provide updates on the liquidation process.