In a statement on the company's Web site, the Paris-based company said its financial liabilities prompted it to file for "declaration de cessation des paiements," the French equivalent of administration. The move allows the company to take court-overseen actions such as renegotiating its debt while continuing its operations.
According to James Bromberger, co-chair of the upcoming linuxconf.au, to be held in Perth from January 22, described the announcement as a "great shame," pointing out that Mandrakesoft distribution was often the first platform Linux users bought.
"A lot of people refer to Mandrake as their first installed Linux operating system, and it has been traditionally used by people who aren't so used to Linux," Bromberger said. "It had a very smooth interface and an easy to use desktop which made it an easy package to transition into."
Anthony Rumble, managing director of Sydney-based Linux retailer EverythingLinux said the distributor's fortunes had been affected locally by a tendency to "release" products a month before they were actually available in Australia.
"I think they will pull through on the strength of their products, but their biggest issue is their sales model, if they can get that sorted out they would see a pick up in sales," Rumble said. "Mandrake has been a bleeding-edge distribution because it is very much focussed on the desktop, so it provided an easy-to-use option for new Linux users."
MandrakeSoft last month issued a plea asking customers to boost the company's revenue by buying products and subscribing to Mandrake clubs. The company also has been creating products that expand into corporate markets.
MandrakeSoft's revenue has been increasing and its expenses decreasing, but the company remains unprofitable thus far. The company's stock is publicly traded on an unregulated European market.
While the company is based in Paris, the largest fraction of its revenue comes from North American buyers, and is thought to be amongst the top five distributions in Australia.
"There are a lot of distributions of Linux out there and over time people will move to a few of the large ones," Bromberger said. "I am just hoping that the products would be able to be revived, even if the company is not."
Version 9.1 of Mandrake Linux software is expected in April, the company said.
Stephen Shankland, Special to ZDNet, contributed to this report.
I hope Mandrake receivers from its financial problems. Mandrake has been my "entry point" in the Linux experience, and has enabled me get to first base without too many dramas. I have used 8.0, 8.1 and 9.0. They have all installed very easily. I joined the Mandrake Club (which wasn't cheap in $A) as a way of putting something back, but it seems that the company has suffered badly from some management problems a few years ago. Their product is basically good so I wish them well.