Amp’d Mobile files for bankruptcy because of ‘rapid growth’

Steve Safran June 3rd, 2007

Amp’d Mobile has filed for Chapter 11 bankruptcy protection, according to statement released by the company. In the release, Amp’d writes: “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.” Engadget isn’t buying the, well, strange excuse: “…since when does growth and consumer interest in an MVNO’s service equal business-rattling financial problems?” 24/7 Wall Street writes: “That may be the oddest excuse for a Chapter 11 filing ever spoken.” Amp’d has 200,000 subscribers and MocoNews points out that the company owes creditors $100 million.