We first broke this story on Friday, a few hours before Electrograph’s official announcement was posted.

Due to the economy and an inability to access to credit, Electrograph Systems is set to close and liquidate, effective immediately. We at rAVe are deeply saddened by this news, not only because of our friends and colleagues at the company (including Sam Taylor, who built the company from the ground up), but also because of the valuable resource Electrograph was to integrators by providing products, support, and especially education. This is no small loss for our industry.

We have reprinted the entire press release below.

–Gary Kayye, CTS

ELECTROGRAPH SYSTEMS ENTERS LIQUIDATION PROCESS

May 29, 2009 – HAUPPAUGE, NEW YORK – Electrograph Systems, Inc. announced today that it will be moving forward with a liquidation process of all its inventory and assets.

Alan Marc Smith, Electrograph’s outgoing CEO said, “We are very disappointed with this outcome. There were a number of factors leading to this result including poor economic conditions and constrained access to vendor credit. After exploring all other possible avenues for sustaining the company, including an unsuccessful sale process, our board decided this was the only path for our company.”

“After being with Electrograph for 22 years, I am deeply saddened by the result of this situation. We would like to thank our resellers for their business over the past 25 years, our vendor partners and other friends in the industry for their support. Above all, we thank our loyal employees for their hard work and dedication,” said outgoing President Sam Taylor.

During the wind-down period, a group of 60 employees will be staying and the four warehouses in City of Industry, CA, Grove City, OH, Hauppauge, NY and Middletown, NY will remain open and shipping product. The remainder of Electrograph’s 75 employees was laid off today.

Continued Smith, “The last couple of months have been challenging for our employees and we’d like to say thank you for their loyalty, professionalism and service to our customers and to each other.”

The company’s website will remain functioning during this period where it will be advertising promotional offerings and posting updates on the liquidation process.