Blog Post

Amp’s Official Statement on Bankruptcy; Continuing Operations

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.

3 Responses to “Amp’s Official Statement on Bankruptcy; Continuing Operations”

  1. lynn tran

    hoo boy! this completely vindicates everything i was thinking while I worked in Ampds offices in West LA. I kept thinking to myself, this product is not very good at all and the rates seem very high. Who would pay for this?

    At a certain point in 2006 it became clear that the subscribers weren't coming and so that's why they dropped the credit standards–to satisfy investors with new subscriber numbers (never mind that they were complete risks, and that what they were being sold was/is an incomplete project).

    "Max" who commmented above me no doubt is writing on ampd's behalf. It is very disingenuous for him to put blame on the resalers for not educating new sign-ups… beleive me, management wanted and needed those new subscribers at the time.

    the one thing i have to say is that i have never been in a work environment so completely creepy. They have a practice of hiring very good looking women and the entire office felt like it was comprised of cheerleaders from high school. The marketing departments got the nicest workspaces and the tech people supposedly making this service work were comprised of a handful of contractors stuffed into the back of the building.

    It actually felt like the place was a front for some other type of illicit business. As it turns out, i'd say that business was fleecing VC firms of their money…all the while partying like rock star wannabees.

  2. Sue has been COO of other companies while they were in bankruptcy. If that didn't tarnish her, I don't see how cleaning up this mess will.

    Totally agree with jbone regarding Sue/Bill. Things would be so much better if Sue came on when she was supposed to, instead of big Bill switcheroo thanks to T-Mobile.

  3. jbone

    As an x employee Peter is the last person who should remain. Sue is the only hope. If T-Mobile did not mess up her hire things would much better. Instead they brough in the verizon marketing guy who did not watch the backend operations. Pay me now or pay me later.