Comdex producer may file for bankruptcy

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SAN JOSE, California (AP) -- Key3Media Group, the producer of the legendary Comdex tech trade show, said this week it may not be able to make debt payments and may have to file for bankruptcy protection.

The announcement, which was made in its third-quarter financial results, also said the Los Angeles-based company was exploring other alternatives, such as a merger or raising additional capital.

"Key3Media's board believes this process represents the best alternative in these difficult times for preserving the value of its brands and businesses for its stakeholders," the company said.

No decision will be made until after the fall Comdex show, which is scheduled to open Monday in Las Vegas and run through Friday.

Struggling with weak attendance

Comdex, like most trade shows, has struggled with weak attendance since the September 11 terrorist attacks and because of the sour economy. Key3Media shows -- which include Comdex, NetWorld+Interop and Seybold Seminars -- also focus on the struggling tech industry.

About 125,000 attendees are expected at the fall Comdex show -- about the same as last year. The number of exhibiting companies is expected to drop to 1,000, from 1,685 in 2001 and 2,337 in 2000.

In September, Key3Media canceled a number of regional shows, including a Comdex show in Chicago. It also laid off nearly half its staff and closed an office in Needham, Massachusetts.

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