Key3Media Group, the producer of the annual Fall Comdex fete in Las Vegas, has announced that it may not have the resources to cover its debt payments and may be forced to file for bankruptcy protection.

No decision will be made until after Comdex has concluded; the trade show ends today. Comdex has been struggling to overcome weak attendance at its trade show since September 11, 2001, and the economic slowdown has hit the technology industry hard. The ripple effect is being felt: the number of exhibitors at the Las Vegas Convention Center for Comdex 2002 reportedly dropped to 1,000, down from 2,337 exhibitors in 2000. Los Angeles, California based Key3Media reportedly let almost half of its staff go in September of this year and closed a regional office in Massachusetts to reduce its overhead, in addition to canceling its regional trade show in Chicago (Comdex-Chicago). Fred Rosen took over the Comdex technology trade show in March 2000, the same month technology stocks began plummeting downward.

Last week Rosen criticized many companies in the technology industry that Comdex is meant to serve. "This is the industry event," Rosen said, "and the industry needs to support it." While the number of attendees at the convention itself is consistent, Rosen is angry at the number of exhibitors that have opted out of establishing and paying for a booth at the Las Vegas Convention Center. "They take hotel suites," he complained. "It's disingenuous. You can't have it both ways. If you drain the river too far the riverbed becomes dry. I don't want to see the headline 'Comdex at Risk,' but it's accurate." Most people don't comprehend the unique role that conferences play in the technology industry. Historically, technology conferences have catered to a group of geeks (generally men) who enjoy hanging out together and "talk shop" about new products, trends, etc. Comdex originated from the counter-culture roots of the PC industry, where early computer hobbyists and programmers were a technology counter-culture, and banded together for mutual support and sharing of information and ideas.