Original URL: http://www.theregister.co.uk/2007/06/05/ampd_chapter_11/
Amp'd volume fading
Content-driven MVNO files for Chapter 11
Amp'd, the US MVNO launched less than two years ago and targeted at da urban yoof, has filed for Chapter 11 - protecting itself from creditors while trying to sort out its finances.
The company has burned through the $360m invested over the last two years, and now owes around $100m to creditors, including Verizon, which carried the network, and Motorola, which provided the handsets.
MVNOs are expected to target specific demographics, and Amp'd is focused on the 18 to 35 year old urban early adopters - lots of video content and sponsorship of extreme sporting professionals such as Travis Rice.
In April, Amp'd admitted to having only 200,000 customers. Repeated attempts to raise more money have led to a sprawling board membership and power slipping away from founder Peter Adderton, driving battles over company direction.
Chapter 11 doesn't mean the company will go under, just that it needs some time to check behind the sofa for loose change and sort out its accounts - companies can recover, assuming their business model isn't fundamentally flawed.
But if Amp'd does go down, the exclusive mobile rights for the "Ultimate Fighting Championships", and sponsorship for Ryan Sheckler's "Backyard course with halfpipe, table tops and several grind rails", will be up for grabs. ®