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Amp'd files for chapter 11 bankruptcy

Ryan Block, @ryan
06.02.07
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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.

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