End of the line for DRR

Digital Railroad servers reach the end of the track.

11/11/2008 - 22:47

Diablo Management, the specialist company handling the failure of former image hosting company Digital Rail Road, has informed DRR's former customers and clients that the servers used by the company are now going to be wiped clean and offered for sale by auction with immediate effect.

Diablo posted a message on it's website: "Digital Rail Road had hoped that it could preserve the images on the storage devices so that the owners of these images could recover them. Unfortunately, this was not achievable. We apologise for the difficulties that this has created but without additional resources we have no other recourse."

The move comes after Newscom withdrew it's letter of intent to buy and operate some of DRR's specific assets and also after a second company withdrew from negotiations with Diablo last Friday.

It appears that Newscom, having looked into the costs of running some of the DRR servers, software and technologies, decided that the venture would be too costly to facilitate. Similarly, Diablo Management, who specialise in liquidating and selling off parts of failing companies in order to recover any assets for investors would be left footing the bill for the costs of keeping the servers running.