Is Pleo headed for extinction? 

Rumors are swirling on the Internet that Eagle-based Ugobe, maker of the sophisticated interactive robotic dinosaur Pleo, may be closing its doors.

A Web search on April 3 found Ugobe’s corporate and PleoWorld Web sites had been replaced with a page reading “This space has been reserved,” and a lawsuit filed against the company on April 1 by New York-based Arrow Electronics alleges the company is in breach of contract for failing to pay for more than $284,000 worth of electronics products. Arrow said it is suing to recover the amount owed by Ugobe, plus attorneys’ fees.  

Ugobe co-founder and CEO Caleb Chung wouldn’t comment on specifics, but told the Idaho Business Review that he’s heard the speculation, is aware of the lawsuit, and the company plans to issue a press release in the “next few weeks.”

“We’re going to respond to a lot of these rumors; we’re just going to do it in an organized way,” he said. “…Our company has always tried to have as much transparency as possible.”

In February, Wired magazine publicly speculated on its Web site that Ugobe was having trouble moving Pleo – which retails for between $280 and $350 – during a time when consumer spending is down.

Chung wouldn’t discuss the state of the business, but did say he’s “cautiously optimistic.”

“I think that’s fair to say. I’m not despondent, I’m not depressed,” he said.

When Pleo was unveiled about three years ago, it was hailed as one of the best inventions of 2006 by Time Magazine, featured in The Wall Street Journal and as a guest on NBC’s “Nightline” and the “The Today Show.”

Eagle city officials and business leaders applauded Ugobe’s decision in October 2008 to move its sales and operations from Emeryville, Calif. and merge them with its existing 9,000-square-foot R&D facility in Eagle. The company has since been referred to as an anchor of the Eagle-Star Tech Corridor – an effort led by developers, entrepreneurs and government officials to create a cluster of high-tech businesses between Eagle and Star, northwest of Boise.

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