The first research library that I was aware of that was broken up and scattered was Trevor Dupuy’s library that was kept at HERO/DMSI (HERO was a division of DMSI at this stage).
One has to talk corporate structure here for a moment. HERO (Historical Evaluation Research Organization) had been established and built up by Trevor Dupuy. In an attempt to expand the business, he created a company called DMSI (Data Memory Systems Incorporated) of which he was just one of the owners (although with about 40% of the stock). In 1987-1989 period, the U.S. defense spending reached it peaked as did DMSI, which had 25 employees. With Glasnost, Perestroika, the Warsaw Pact dissolving and finally the Soviet Union collapsing in 1991, the defense budget collapsed. In the resulting collapse, so to did DMSI. With the business crashing, Trevor Dupuy having a falling out with the other management and quit his own company.
DMSI/HERO had an extensive library and an extensive collection of research files, dating back to its founding in 1962. They even had share library privileges with the Library of Congress due to some unique material in the HERO library. The library took up a large room and there were file cabinets full of research files.
This library was broken up. First, Trevor Dupuy took the report file he kept in his office with him. This was the entire collection of 120+ reports written by HERO. Those eventually ended up at TDI (The Dupuy Institute). The library remained at DMSI, except for those books that the Dupuy family took from the library, which I gather was considerable. These are still in the hands of the Dupuy family. Then DMSI went out of business around 1993, and the remaining files and library were scattered. The employees were invited to take what they wanted out of the files. After that, one employee decided to rescue the files that he thought were important and moved them to his barn in rural Virginia. These included most (but not all) of the Ardennes files and Grace Hayes files (the original VP of research at HERO). A few years later, we arranged with that ex-employee to reclaim the files and he graciously brought them to our office from his barn. After we blew the dust, dirt, hay and mouse droppings from them, we then refiled them at TDI. The files taken by other employees were not recovered. Most of the remaining library was taken by a principal at the company and moved to his basement. They were used for his business for a while. Eventually, he needed to clean his basement and the “HERO Library” ceased to exist.
We were able to save most of the critical files, meaning the reports, most of the Ardennes files and the Grace Hayes files. The rest was lost, which was a shame, although not overwhelmingly critical. Still, the process got my attention and this is potentially a problem with any private company. Unless someone goes through some extra-ordinary process to preserve the files and libraries of their work, then when a private company collapses (which most do at some point), those files are lost. I am aware of several other cases like this.