In the early summer of 1983, an effort was made to produce a version of the Osborne Executive that would be compatible with the IBM PC. Although the company’s partners provided $ 9 million in funding in April and another $ 11 million in June, Osborne was unable to raise $ 20 million more to market the product. IBM compatible. A “team of tigers” was formed, mainly to create a prototype circuit board compatible with DOS and a front frame to adapt to the changes of connectors. The design used many parts of the executive, including disk drives, display, chassis, power, and keyboard. It was completed in six weeks and shown to a number of potential investors but was not able to generate enough interest to save the company from bankruptcy. On August 2, the New Jersey plant was closed and 89 workers were laid off. A few days later, 200 workers were fired from the Hayward facility in California.
In early September, the banks seized the company’s accounts receivable. On 9 September another 270 workers were laid off and all production stopped, leaving 80 workers on the California payroll. Three days later, on September 12, Porter Hurt sued his businesses for $ 4.5 million for printed circuit boards. On September 13, 1983, the OCC filed an application for Chapter 11 protection in Oakland, California, Federal Bankruptcy Court, with assets of $ 40 million, a liability of $ 45 million, and 600 creditors.