The company suffered financial losses during 1979, leading to Huggett leaving the company early the following year. It filed for bankruptcy after debts to component suppliers increased beyond a sustainable level. Wagner formed a follow-up company, Electronic Dream Plant (Oxford) which produced the Gnat. He was ousted from the company in 1981, and formed Wasp Synthesizers, which produced a very limited run of Special versions of the Wasp and Gnat. This breakaway company lasted less than a year and its products are even rarer.