JT Storage

From Academic Kids

JT Storage (also known as JTS) was a maker of inexpensive IDE hard drives for personal computers based in San Jose, California. It was founded in 1994 by Jugi Tandon—the inventor of the double-sided floppy disk drive and founder of Tandon—and Tom Mitchell, a cofounder of Seagate and former president and Chief Operating Officer of both Seagate and Conner Peripherals.

JTS initially planned to focus on very small form-factor drives for laptops, but the majority of the products it released were standard 3.5-inch form factor hard drives. These drives were very cheap and offered 5400 RPM spindles, similar to its contemporaries, but the drives were known for poor performance and workmanship; produced in a factory in India, failure rates were very high and quality was hit-or-miss (good drives were very good, still running after 5 years, whereas bad drives almost always failed within a few weeks). Because of their low-tier reputation, JTS drives were rare in brand-name PCs and most frequently turned up in home-built and whitebox PCs.

On February 13, 1996, JTS merged with video game producer Atari. It was primarily a marriage of convenience. JTS had products but little cashflow. Atari had money, primarily from a series of successful lawsuits earlier in the decade followed by good investments, but with its Jaguar console struggling in the marketplace, losses mounting, and no other products to sell, Atari expected to run out of money within two years. While JTS announced plans to continue both brands, within a few weeks of the merger becoming official on July 30, 1996, the majority of former Atari employees were dismissed and Atari's remaining inventory was sold to liquidators.

Even with the cash infusion from Atari, JTS quickly ran out of money. On February 23, 1998, JTS sold the Atari name and intellectual property to Hasbro Interactive for $5 million in cash. Later that year, on December 11, JTS filed for Chapter 11 bankruptcy, converting to involuntary Chapter 7 on February 28, 1999.

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