Struggling Imation Turns Focus To Corporate Services
Imation is closing down several of its business units as the struggling company attempts to transform itself into a “pure-play data-storage and security company.”
The Oakdale-based company is ending its non-European legacy tape business, its consumer storage division and a long-term license agreement with Japanese technology company TDK Corporation.
“These wind downs are critical in our ongoing effort to create a leaner, more focused Imation,” Barry Kasoff, interim president and board member, said in a statement.
Imation will instead focus on providing corporate data-storage and security.
The company has been in a tailspin in the last year. Earlier this year, TCB wrote about the proxy battle at the company as activist investors made a push to remove several board members after years of lackluster quarterly reports. They ultimately succeeded in replacing several seats. Imation’s CEO Mark Lucas stepped down shortly after that.
Wall Street was largely unfazed by the news. Share prices were flat from yesterday’s close by mid-afternoon Tuesday.