Amp’d PR finally sends around an official statement on the Chapter 11 filing. The official reasoning: “As a result of our rapid growth, our back-end infrastructure was unable to keep up with customer demand. We are taking this step as a necessary and responsible action to sustain and strengthen our momentum in the market place.” Don’t dismiss this as pure spin, despite how laughable it sounds: there is half-a-kernel of truth in this. Amp’d was growing fast, but it tripped up on customer service, retention, collections and subsequently payments.
Also, it says:
— “During the reorganization process, we are working with one of Amp’d Mobile’s largest investors to obtain debtor-in-possession financing. Our investor supports our vision, strategic direction and business plan.”
— “Amp’d Mobile’s senior management team remains largely intact as we continue to focus on improving and scaling our backend infrastructure.” On management, my guess is that COO Sue Swenson, who also sits on the company’s board, might be among the top execs to leave….she is also on the board of Wells Fargo and I doubt she would want to taint her serious creds going through a bankruptcy. Of course this is my idle speculation and nothing else. Also, something has to happen to bring back CEO Peter Adderton into the fray (who hasn’t been to the office in close to a month, my sources say, though he remains CEO…also his relationship with the board has been contentious, to say the least), or I doubt he would stick around.