Fusion Garage is Dead; But the Controversies Still Live On

Fusion Garage, the company behind the JooJoo tablet, has been embroiled in controversies ever since it had its first falling out with Michael Arrington, who was supposedly a partner in the Crunchpad project, which was later renamed to JooJoo. The JooJoo tablet bombed as it launched after the Apple iPad, which quickly took over the entire tablet market.

After that, Fusion Garage went underground and resurfaced in August 2011 with its new offerings – the Grid 10 tablet and the Grid 4 smartphone. However, it seems like even those new products weren’t able to save Fusion Garage. According to a new report by Business Insider, Fusion Garage is officially done, and is liquidating its assets to pay off its creditors. It owes a total of $40 million to its creditors, which it won’t be able to pay off completely.

While bankruptcy is common in startups, that’s not all. An employee of Fusion Garage tweeted this:

“I’m amazed about how badly a company can screw up, I can’t imagine that many people will be left once the new company is formed.”

Apparently, Fusion Garage is trying to start a new company with its old employees, enabling it to avoid paying off its complete debt as the assets of the old company are hardly worth $40 million.

If you had pre-ordered the Grid 10 or Grid 4 from Fusion Garage, you will probably not be getting your money back.

It seems that Fusion Garage’s law firm and PR firm saw it coming. Both stopped working with Fusion Garage in late-2011, just around the time they started accepting pre-orders for the Grid 10 and Grid 4 devices.

Fusion Garage Grid 10: JooJoo 2?

Fusion Garage, the company behind the controversial JooJoo tablet, or should I say the CrunchPad, is back with another tablet. The guys at Liliputing discovered a new listing for a device on the FCC website, by Fusion Garage. From the name and the design, it seems to be a 10 inch tablet. No other details are known yet, except that it might be codenamed the Grid 10.

Fusion Garage Grid 10

The CrunchPad was Michael Arrington’s pet project, and seemed quite promising when it was first announced. Of course, the iPad hadn’t been launched then, so it had a good chance of being one of the very first tablets. However, things went bad between Techcrunch and Fusion Garage, the company which was developing the CrunchPad, and after some very public mudslinging, they broke up.

Soon after that, Fusion Garage launched the JooJoo tablet. But by then, Apple had already announced the iPad, and we all know what happened next. The iPad created the entire tablet market, and continues to dominate it even now. The JooJoo, which was a tablet version of what we now know as Google’s Chromebook, with just a browser, died a silent death.

Rumors suggest that Android Honeycomb may power the new tablet by Fusion Garage. If that is true, I am willing to wager that it will be a huge failure again. If the Grid 10 is just another Android Honeycomb tablet, there is no plausible way in which Fusion Garage can beat biggies like Samsung, HTC or Motorola.

For now, let’s wait and watch.