Amp'd Files for chapter 11 bankruptcy
By Ryan Block 
posted Jun 2nd 2007 9:13PM
posted Jun 2nd 2007 9:13PM
We wish we could say we're surprised -- ok fine, we're always a little surprised when a company files for bankruptcy -- but it looks like Amp'd Mobile has filed chapter 11. We know the business has almost 200k subscribers, but apparently the business "couldn't keep up with the growth" -- but since when does growth and consumer interest in an MVNO's service equal business-rattling financial problems? Sounds like something weird is going on, but remember, chapter 11 just means down, not out. (Unlike the entirely out MobileESPN.) In other words, don't be surprised if Amp'd gets its business back in order and makes a triumphant return to the market -- or, you know, goes out of business entirely. [Warning: subscription req'd for link]Update: mocoNews has some more info on the filing, including how much money Amp'd owes who; Amp'd also sent us an official statement on the bankruptcy filing, which is posted after the break.
OFFICIAL STATEMENT FROM AMP'D MOBILE
On June 1st, 2007, Amp'd Mobile Inc. filed for protection under Chapter 11 bankruptcy to restructure the business. 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.
We expect to continue normal business operations throughout the reorganization process. We are confident that we will emerge from this stronger than ever for the following reasons:
The strength of Amp'd Mobile's brand and high customer demand for the product.
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.
We are committed to assuring Amp'd Mobile services remain uninterrupted and will continue to provide our customers with the best service possible.
haha
Another Company Verizon can buy out... this one is easier because it's VZW Networks and simular phones.
I dunno, I'd bet on Sprint since they're not doing so much ISP'ing anymore and acquiring a relationship with Earthlink may be something to be a bit more amped about.
OOPS!!! Helio's pwned by E Link, not amp'd.
People don't need to worry. It's only Chapter 11. Just bankruptcy protection.
bankrupt'd
How about...our subscribers are fuck'd?
crap'd mobile
It was a rip off anyways. Not to mention the commercials were so lame.
so I should sign my next contract with them since it may be ended early on account of them going out of business
I said it would fail within a year the day it started.
Where your debt at?
Maybe the network providers will sell pre-paid cards to Amp'd!!
Its hard out there for a... MVNO...
You guys think it's bad being a customer? Try selling their phones. As a wireless employee at BBY, I hate them, along with every other employee in my department. Their activation system is completely undeveloped and looks like it was put together by a kid, and is accessible to the public. You can only activate a primary line on it, and can't look up any account information. If you need to activate a secondary line, you can count on sitting on hold for 45 minutes to talk to someone at activations.
Multiple times I've had to turn customers away because the phones just wouldn't work even after a manual programming. They've gotten better, but up until about two months ago, almost everyone was denied due to credit, even people that had a zero deposit with VZW, ATT, and Sprint.
Also, they need to look at their demographic. 18-30 year olds don't want an 18 month contract, no matter how "revolutionary" it is touted as. They want a prepaid phone.
And lastly, when they first started up, on two occasions I had two different customers go through three phones each in a two week span, and I had a separate customer go through four in the same amount of time. It was those damn Kyocera sliders they use. They're crap.
They have followed the same path as ESPN. When they first started out, you could tell they hadn't done any research and had spent all their time and money producing commercials and hyping up their service, so when launch time came, they suddenly remembered that people actually want to use the phones and make calls.
Wow. You should retire your retail nametag and do marketing for a start-up, or program back end infastructure for activating cel phones. Sounds like you're all over it.
I'm the wireless-car-fi sup and I agree completely with you. Just yesterday, during a new activation, they gave us a fake number that supposedly was activated just to get that customer off the phone with them. She was being difficult to begin with, but I can't believe that there's a phone company that will lie to a customer, knowing fully well we have to deal with the consequences.
Good riddance to Amp'd. I would highly suggest to any customer that it is not--in any way, shape or form--a good company to have to deal with.
Time to take out the trash sucka... ;)
This surprises me a little. Last earnings report we heard 40% rev growth - nothing to sneeze at. They also have among the highest ARPU in the biz.
They effectively burned through >$300 million in 6 months ... and are seeking Ch. 11 protection because of "too much growth," WTF??? They must be spending WAY too much acquiring customers, cause their churn (from what I can tell) is not bad. Maybe they have underestimated customers usage when they intro'd the $99 all-you-can-eat plan?
I don't get it. On the face of it, they should be printing money. And, yeah, their handsets suck a bit but that alone does not account for the news.
80,000 customers didn't pay their bills. That would put any company in a bit of a "cash crunch"
heh, my wife got one of their prepaid razors and amp'd promptly charged our card 20, yes 20, 20 dollar debits with in a 2 minute span. locking my bankcard down till I could talk to fraud protection. it took about a week of waiting on hold for hours to get that sussed out.
when I told them to refund all my money and cancel the line or we'd see em in court they were like "oh why do you want to cancel?" gee I don't know. you raped my checking account and kept me on hold for 15 hours total. I hope they go out of business
I have been fighting with them since March over a credit, which they finally recognized and gave me but then shut me off a week later telling me that the credit will go in to effect when I pay the bill and then it will show against future bills....I am temped to tell them to F Off but do not wat to have them attack my credit...any ideas?
I used to own a Yakety Yak Wireless in Tempe, AZ and we sold Amp'd & I used to be a believer.. Yup the Kyocera sliders were/are strait up hot trash. Freezing up, defective and all that jazz, you betcha. They cost (me) alot too. Ampd's product is good but their customer service is the worst I've ever experienced. Long hold times is the norm, ALWAYS. Untrained staff seems to be the norm too. They'll tell you whatever you want to hear. Audi 5000 Ampd, I won't be missin' you!
The other HUGE problem at Amp'd is their HR department! It all starts with recruiting--I interviewed there less than a year ago and the lady in charge had no experience and Amp'd used to be a client of hers so she was given the job, more or less--she was a contracts person trying to build a recruiting department--bad choices in HR/Recruiting always doom a company--lack of infrastructure, bad customer service, etc., most roads lead back to recruiting--how sad!!
amp'd you stink!!!!!!!!!!!
the only thing that was cool about amp'd is the commercial with the guy rapping in the mirror