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“FOX MEYER'S PROJECT WAS A DISASTER. WAS THE COMPANY TOO AGGRESSIVE OR
WAS IT MISLED?”
One thing no one disagrees on is that FoxMeyer Drug crashed and burned. Once a $5 billion
company, FoxMeyer filed under Chapter 11 shortly after taking a $34 million charge to cover
uncollectible costs related to shipping and inventory troubles.
The reason for FoxMeyer's collapse, though, remains a subject of debate. A FoxMeyer
spokesperson told The Wall Street Journal in late 1996 that computer-integration problems
related to the company's IT effort-whose total price tag ultimately topped $100 millionwere "a
significant factor leading to the bankruptcy filing."
In 1998 the trustee in bankruptcy for FoxMeyer sued SAP for $500 million . . . in 2004 SAP paid a specified amount to settle the case.