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.