COMPUTER DEPOT <CDPT.O> TO CEASE OPERATIONS
Computer Depot Inc said it
will cease operations and liquidate its assets.
    The decision results from the termination of the company's
line of credit by its asset-based lender and demand by the
lender for immediate payment of all amounts due, it said.
    Computer Depot said it will stop trading in its shares.
Upon liquidation of the company, no accounts are expected to be
available for distribution to shareholders after payments to
creditors, it said.
    In December 1985, Computer Depot, which sold personal
computer systems and software, filed for reorganization under
Chapter 11 of the U.S. Bankruptcy Code. Its plan of
reorganization was approved in December 1986.
    The company said that yesterday, after demand by its
lender, it agreed to voluntarily surrender its inventory,
accounts receivable and other collateral.
    Operations are dependent upon financing and efforts to
obtain financing, including potential buyers and merger
candidates, have been unsuccessful, it said. Computer Depot
said the company will eventually be liquidated.
    Computer Depot reported a loss of 591,000 dlrs for its
second fiscal quarter ended May 2, 1987, after showing a profit
of 237,000 dlrs for its first quarter, which included the
Christmas selling season.
    The company previously reported that sales and margins
after January had been below expectations, due to uncertainty
in the in the retail market following recent product
announcements by International Business Machines <IBM>.
    Computer Depot auditors, Arthur Andersen and Co, qualified
its recent financial statements citing several risks in the 
company's ability to continue as a going concern.
 Reuter
