Amp’d Mobile Decides To Sell Off Assets

6 Comments

The MocoNews Amp'd Mobile Phone...Still Working, Even As Company Decides To Sell AssetsAs I mentioned earlier today, things are a lot bleaker for Amp’d with no debtor-in-possession financing in place. The company has filed with the bankruptcy court, and has finally decided to sell its assets.

Amp’d said in the court filing that it has continued to look for buyers, but has not been successful. Its secured lender Kings Road Investment, which did not give it debtor-in-possession financing, will now to participate in the auction process. More hearing is scheduled for Monday to determine the bidding/auction procedures, but Amp’d is asking for July 30th as the auction date and August 1 as the decision making date. The full PDF of the asset sale filing from the court is here (27 page PDF).

P.S.: The pic on the right: soon to become a collector’s item, it is a MocoNews-branded Amp’d phone that I’ve had since the start. Not that I used it, or ever got a bill for it. It is working at of 6 PM PST…not sure how long, though.

Updated: LAT: On Thursday, many Amp’d Mobile workers were told to go home for now, said one employee who did not want to be identified for fear of losing her job, even though she expected to be out of work Tuesday. Amp’d Mobile had as many as 360 employees this year, but the company could not say Friday how many remained.

6 Comments

dzuchowski

There was a payment form your credit card that was made so your card was credited back. I did not see the 6/5 charge initially but did see it today and requested a refund of the $53 back to card ending in 3608. That request was just made today so please do not expect to see it before Monday 7/23/2007.
Regards,
Stephanie Smith
Escalations Manager
Amp'd Mobile, Inc.
1925 South Bundy Drive.
Los Angeles, CA 90025
Telephone: (310) 575-2500
Ext. 4018

Facsimile: (310) 954-8826

Email: ssmith@ampdmobile.com

don

There was a payment form your credit card that was made so your card was credited back. I did not see the 6/5 charge initially but did see it today and requested a refund of the $53 back to card ending in 3608. That request was just made today so please do not expect to see it before Monday 7/23/2007.

Regards,

Stephanie Smith

Escalations Manager

Amp'd Mobile, Inc.

1925 South Bundy Drive.

Los Angeles, CA 90025

Telephone: (310) 575-2500

Ext. 4018

Facsimile: (310) 954-8826

Email: ssmith@ampdmobile.com

Why Not

Some Facts/Thoughts:

1. Prepaid users – Say goodbye to your balance.. My advice, buy songs, games anything you can to make some use of that balance.

2.) Amp'd as an idea was great, had amazing potential, but as a whole company, really missed out on the basics. It was handicapped to begin with, as an MVNO, there is very little forgiveness for mistakes.

3.) Helio is headed in the same direction, major difference, deeper pockets and an example to learn from. (Any objections? Explain Best Buy…Radical Extremely Generous Promotions?)
–My Advice: If the unpaid A/R is getting worse, sell it off now and shift gears to fix that aspect asap.

4.) Investors (Debtor-In-Possession) had no idea how to run a MVNO. At the same token, have no idea how to sell such a complex company. Amp'd not only had a big US presence, it is internationally established.

5.) There is money/success to be made from what Amp'd started. For whomever that has that rare idea to buy the whole show, they could be in no better position. In the last 3 months, this company has been doing the right things to save itself, people breaking their backs to giving CPR to the business. buying it in this condition is the smartest thing you can do, if you have that kind of money. A fresh start with the expensive lessons learned taken into account is all you need.

7.) I would not be surprised if point 6 is what happens. The only drawback is earning the trust of not customers but the actual talented employees. The way the company went down, they lost a lot of respect, a start-up acted like a corporation way too quickly.

8.) There is no point in blaming or harping on what went wrong, the outlook should be what can be salvaged and turned into a winning situation.

I feel it would be a shame to let something like Amp'd go down and not to be heard from again. It represents so much and something admirable in the sense of it's intention. Amp'd was never started to screw people, businesses to make a quick buck. The vision was geared to be the true alternative, a revolutionized way of looking at your wireless service. It offered so much but lacked the ability to market and service it properly.

Yes there were people involved that were intricate in running this company down, but the thing to appreciate is that it was something that took these jokers to bring it down but still be the most popular MVNO.

I am not posting this to advocate Amp'd's performance as an MVNO, but give some light to the potential that is left here. Even though the people left selling it's assets having no intelligence in fully knowing it's capabilities, I hope the ones bidding on Amp'd know that this company can actually overcome some the jinx of MVNOs and be the first to be profit-able and realize all that should have been done from day one is DONE! giving up now is foolish and violating the basic teachings of Economics, (Sunken-Cost).

Regardless, they have given up and rationally there may be no future left for Amp'd as a full entity, I know through experience that there are a great deal of people that believe in Amp'd Mobile 2.0.

Other thoughts: Verizon is not really deserving of any blame, though they carry a heavy ego.

Grades:
CEO: B –
CFO: ( 1,2 and 3): D- is the average, F is the latest grade
CMO: C
COO: B – (a little too late)
CIO/CTO – None, but closest System C level: B+
President: C+
Board: D

bigdave

I just got the text msg the phone will be shut off 7/24 12:01am. I had not known they were in bankruptcy til now. I am on business travel and if I lose any service it will hurt me financially. I will be at the Verizon store tomorrow at noon to port over to them.

I dont understand why the bankruptcy court did not look out for the customers and have Amp'd warn the customers of what was going on. We have no idea if Verizon will buy or take over the customers only that our phones will be shut off.

I guess the $99 unlimited phone was too good to be true.

SHAME ON VERIZON FOR SHUTTING US DOWN THEY SHOULD HAVE WORKED WITH THE COURT TO TAKE OVER OUR ACCOUNTS.

Brooke Lecknote

The big mistake Amp'd made was going with Verizon instead of Sprint for their MVNO network. Verizon cost more, is more limited, and doesn't like the idea of another company using their network in the first place. Amp'd first had complaints leveled against them from new customers not being able to use their video services in parts of the nation without EV-DO coverage. Which is a limit set in place by Verizon, which Sprint does not have.
Now Verizon is going to pull the plug on a great concept. If Amp'd would have gone with Sprint in the first place, they would have saved money and had better access to the services they offer. But not it is all over.. Greedy Verizon is going to suck what blood is left from the company.

Maybe they will come back as a content provider like ESPN Mobile did. But they need to stay away from Verizon!

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