The Anime News Network is reporting that Arizona-based anime toymaker Southern Island has gone into bankruptcy.  The company's Website is down, its phone has been disconnected and BK Assets, a bankruptcy liquidator specializing in selling via eBay is in the process of liquidating Southern Island's remaining inventory of products based on such licenses as Fruits Basket, Fullmetal Alchemist, Blue Gender, and Case Closed/Detective Conan (see 'Southern Island Nabs Full Metal Alchemist Figures').  BK will begin auctioning off the remaining Southern Island inventory on eBay on December 11th. 

While the demise of Southern Island LLC may have as much or even more to do with the cutthroat (and increasingly competitive) toy industry than with the current state of the anime market in North America, the failure of this company, which specialized in anime offerings (though it did make a belated attempt to branch out by acquiring licenses for items based on Batman, Lord of the Rings, and Privateer's WarMachine) is not a good sign coming as does in the wake of Geneon's demise.