ShardHost runs away with money!

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Posted by httpCORE, 11-12-2013, 03:05 PM
Just got this email from them...

Due to recent unexpected trading circumstances Shard Hosting Solutions LTD has ceased trading with immediate effect. We urge all clients to take a backup of their data immediately as we cannot guarantee how long services will operate for before being disconnected by our upstream suppliers.

If you feel you are a creditor and owed money by the company please contact:

PHILIP LAWRENCE email:- philip.lawrence@baverstocks.com
Baverstocks Limited Dickens House, 3-7 Guithavon St, Witham CM8 1BJ
Posted by sundaymouse, 11-12-2013, 03:31 PM
Imperial March goes off in background.
Posted by cd/home, 11-12-2013, 03:32 PM
How have they ran away with money it seems they have entered administration or something and your to contact the people dealing with it for them.
Posted by gordonrp, 11-12-2013, 03:38 PM
Summer is over, what did you expect?
Posted by steven99, 11-12-2013, 03:41 PM

Quote:

Originally Posted by cd/home

How have they ran away with money it seems they have entered administration or something and your to contact the people dealing with it for them.

OP might be mean that since they paid for x time and aren't getting x time or refund automatically that they are running away with money. If that is the case and contacting that person to handle it is correct way to get that refund, then indeed not running away with money.
Posted by Brian000001, 11-12-2013, 03:48 PM
45 minutes after I got that email my vps went down.
Posted by DeltaAnime, 11-12-2013, 03:48 PM
InceptionHost was claiming they had 21k GBP kicking at the time of closing so who knows....

No mention of where the figure came from yet, though.

Francisco
Posted by rits, 11-12-2013, 03:55 PM
Kids go back to school so tons of hosts close around this time.
Posted by CN-Jeremy, 11-12-2013, 03:58 PM
Christmas break is coming soon... the kiddie host will be back...
Posted by cd/home, 11-12-2013, 04:02 PM

Quote:

Originally Posted by DeltaAnime

InceptionHost was claiming they had 21k GBP kicking at the time of closing so who knows....

No mention of where the figure came from yet, though.

Francisco

http://companycheck.co.uk/company/07679837
Posted by Awmusic12635, 11-12-2013, 04:28 PM
Wonder what happened
Posted by httpCORE, 11-12-2013, 04:41 PM

Quote:

Originally Posted by cd/home

How have they ran away with money it seems they have entered administration or something and your to contact the people dealing with it for them.

It's only a few dollars but the VPS went down about 40-60 minutes after the email. The email they provided bounced back for me.
Posted by cd/home, 11-12-2013, 04:52 PM

Quote:

Originally Posted by httpCORE

It's only a few dollars but the VPS went down about 40-60 minutes after the email. The email they provided bounced back for me.

Try ringing them:

Quote:

PHILIP LAWRENCE

email:- philip.lawrence@baverstocks.com

Colchester Tel 01206 576216

Witham Tel 01376 519044

Posted by HostMantis, 11-12-2013, 05:00 PM
I just don't understand why providers do this to clients.

Why not at least sell the business to another company? Why just let it disolve like that?

It gives our industry a bad name.
Posted by cd/home, 11-12-2013, 05:03 PM

Quote:

Originally Posted by HostMantis

I just don't understand why providers do this to clients.

Why not at least sell the business to another company? Why just let it disolve like that?

It gives our industry a bad name.

Maybe they couldn't find a buyer or the assets and loans or whatever out weight the value of the clients meaning they could be already in the red sometimes this is the only way to move forward and actually save from complete devastation such as declaring bankruptcy.

Hardware deprecation is also considered I wonder how many rushed out and bought the latest E3's when they hit the shelf's try selling them for that price now you'll be laughed at. Hence why is vastly doesn't pay to run the latest and greatest gear which hits the shelf's each year most the clients couldn't care and you'll only be damaging your own cashflow.
Posted by EliteTurtle, 11-12-2013, 05:05 PM

Quote:

Originally Posted by HostMantis

I just don't understand why providers do this to clients.

Why not at least sell the business to another company? Why just let it disolve like that?

It gives our industry a bad name.

They probably didn't pay their bills for a while and no one else would want to take on the debt.

Disclaimer: I don't know why ShardHost shut down, and I'm in no way claiming that they didn't pay their bills this is an assumption of why they didn't sell out. There could be many other reasons also.
Posted by sjr2004, 11-12-2013, 05:08 PM
Yea, just about that time. Maybe some of the real hosts, and companies trying to grow will be able to get clients at a low cost due to the kiddie host's going home.

p.s. I cant put a thumbs up to the posts why is that I am only able to put a thumbs down.
Posted by cd/home, 11-12-2013, 05:10 PM

Quote:

Originally Posted by sjr2004

Yea, just about that time. Maybe some of the real hosts, and companies trying to grow will be able to get clients at a low cost due to the kiddie host's going home.

p.s. I cant put a thumbs up to the posts why is that I am only able to put a thumbs down.

Considering there age they have done extremely well:

Quote:

The latest Annual Accounts submitted to Companies House for the year up to 31/03/2012 reported 'cash at bank' of £21,083, 'liabilities' worth £10,630, 'net worth' of £14,814 and 'assets' worth £21,155.

Posted by sjr2004, 11-12-2013, 05:18 PM

Quote:

Originally Posted by cd/home

Considering there age they have done extremely well:

Yes absolutely! I want my company to thrive I am just getting started.
Posted by ZonedHost, 11-12-2013, 05:33 PM

Quote:

Originally Posted by cd/home

Considering there age they have done extremely well:

Yer, some of us are lucky to achieve that after a good few years in the industry. I smell a rat with that in all honesty! I wonder how many other "business's" their principal owner has with Company's house? It could be a case of him laundering debts and or profits between companies?
Posted by cd/home, 11-12-2013, 05:35 PM

Quote:

Originally Posted by sjr2004

Yes absolutely! I want my company to thrive I am just getting started.

I do think it's time people of this forum to get heads into gear and maybe look at the stats of business failures and the reasons why stupid things like late invoice payments from clients can kill a business just as much as the directors going on drinking binges at the lap dancing club some 25% will fail during the first year with a good portion not even reaching the 2-3 year mark some can't have access to funding for expanding horizons either. Ultimately some of the biggest companies and banks in society have collapsed I guess there "kiddie providers" as well?
Posted by sjr2004, 11-12-2013, 05:49 PM
No, Some people think they are business savy or they may be but just not smart with handling money or it goes to their head. my family has done that stuff before
Posted by Spluut, 11-12-2013, 05:57 PM
No matter how much debt a company is in, they can still sell the clients for 10x+ what that client is paying monthly.
Posted by cd/home, 11-12-2013, 05:57 PM

Quote:

Originally Posted by sjr2004

No, Some people think they are business savy or they may be but just not smart with handling money or it goes to their head. my family has done that stuff before

It doesn't matter how smart you are or what your family has done if your not getting the custom through the door you don't have a business the same go's for if you offer everything for nothing the time will come when you have to stop operating like a charity. Richard Branson is likely one of the smartest business people still walking the planet but that didn't stop him going bankrupt was it twice or three times...
Posted by Martin-D, 11-12-2013, 06:10 PM

Quote:

Originally Posted by Spluut

No matter how much debt a company is in, they can still sell the clients for 10x+ what that client is paying monthly.

The clients are an asset - you can't flog off assets when the company is going in to liquidation.
Posted by Spluut, 11-12-2013, 06:17 PM

Quote:

Originally Posted by Martin-D

The clients are an asset - you can't flog off assets when the company is going in to liquidation.

Typical small web host just rents servers from a data center, they have nothing to do with your business.

No one can stop you from selling your contacts/clients, even the data doesn't belong to the data center so again nothing they can do.
Posted by Martin-D, 11-12-2013, 06:19 PM

Quote:

Originally Posted by Spluut

Typical small web host just rents servers from a data center, they have nothing to do with your business.

No one can stop you from selling your contacts/clients, even the data doesn't belong to the data center so again nothing they can do.

It's a Ltd company - you can't just sell off the clients (assets) if you've gone in to liquidation.
Posted by cd/home, 11-12-2013, 06:20 PM

Quote:

Originally Posted by Spluut

Typical small web host just rents servers from a data center, they have nothing to do with your business.

No one can stop you from selling your contacts/clients, even the data doesn't belong to the data center so again nothing they can do.

This is a limited company completely different to just a "business" or the typical sole trader type setup.
Posted by Spluut, 11-12-2013, 06:20 PM

Quote:

Originally Posted by Martin-D

It's a Ltd company - you can't just sell off the clients (assets) if you've gone in to liquidation.

I'm not sure if you read the title.

Literally nothing anyone can do or will care enough to do.
Posted by sjr2004, 11-12-2013, 06:25 PM

Quote:

Originally Posted by cd/home

It doesn't matter how smart you are or what your family has done if your not getting the custom through the door you don't have a business the same go's for if you offer everything for nothing the time will come when you have to stop operating like a charity. Richard Branson is likely one of the smartest business people still walking the planet but that didn't stop him going bankrupt was it twice or three times...

I compleyly agree 1000% as with this example and other examples this business is pretty hard to get going and make a desent profit to grow and thrive. Especially the web hosting business there are too many kiddie hosts giving everything for nothing and closing it gives good hosts a bad rap I have been in sales for a long time but online sales getting them from online advertising is hard I've seen a lot more customers from my car magnet than my wht posts or other online advertising sites
Posted by cd/home, 11-12-2013, 06:26 PM

Quote:

Originally Posted by Spluut

I'm not sure if you read the title.

Literally nothing anyone can do or will care enough to do.

They haven't ran off with anything so the title is misleading. I think people forget that businesses/companies do fail and yes they will be times things like this happen. It's pretty common practice in the business world closing in such a way that the liquidators deal with the mess.
Posted by CW Mike, 11-12-2013, 07:28 PM
Sadly things like this happen, I'm surprised they didn't explain why, rather than leaving the customers puzzled and some without files. 24 hours notice would of been nice.
Posted by domainbop, 11-12-2013, 09:15 PM

Quote:

Originally Posted by gordonrp

Summer is over, what did you expect?

If they were a summer host, TheRegister, one of the largest UK tech news sites, wouldn't an article on their shutdown
http://www.theregister.co.uk/2013/11...ing_shut_down/
Posted by GlassHost, 11-12-2013, 09:19 PM
Yeah its a bit harsh i think if you are gonna shut down at least sell to another company or give to another company!
Posted by cd/home, 11-12-2013, 09:20 PM

Quote:

Originally Posted by Ctrlspeak

Yeah its a bit harsh i think if you are gonna shut down at least sell to another company or give to another company!

Only if it was that easy...
Posted by Fixago, 11-12-2013, 10:15 PM
Well you get what you pay for. Customers need to learn to choose reputable, established, debt-free hosts.
Posted by CBH-Nick, 11-13-2013, 12:04 AM
Well, there goes my $20. Oh well, I guess this is what happens when businesses aren't sustainable. Can someone tell me why Inception Hosting is mentioned on this thread? I have a VPS with them as well and I would like to know if they're shutting down as well?
Posted by astutiumRob, 11-13-2013, 12:06 AM

Quote:

Originally Posted by HostMantis

I just don't understand why providers do this to clients.

Its a legal requirement to cease trading when you're insolvent, although the sale of the 'assets' if it'll pay off all the creditors is still an option.

I look at a _lot_ of hosts that want out of the industry, my 'stats' for 1st half of 2013 show that of 114 hosts looked into, only 38 had clients that could be considered 'profitable' for the acquirer

Too low barriers-to-entry, too high 'resource' offers, too little in the business plan, too low pricing structures, non-existnat brandining/marketing and when the host doesnt make 100 beelion d-lars by the time their unlimited reseller account needs paying for the 2nd time they shut up shop !

Q4 of any year is always a time when dozens of hosts 'vanish' every month, because the provider gets told by their mummy to do their homework ...
Posted by hosting_we3cares, 11-13-2013, 01:41 AM
I have been discussing about such child running companies running away and the precautions to be taken over here.

http://www.webhostingtalk.com/showth...97#post8906097

We need help from WHT moderators. If each and every company submits the LTD details at WHT at least, if they don't refund the client, we can try to trace them. I'm really not sure whether the address given above is valid and the clients are gonna get their money back and if they do, its great..

All the best!!!
Posted by spencerocks, 11-13-2013, 01:46 AM

Quote:

Originally Posted by domainbop

If they were a summer host, TheRegister, one of the largest UK tech news sites, wouldn't an article on their shutdown
http://www.theregister.co.uk/2013/11...ing_shut_down/

Gordon just has a stick up his ass since they Colo'd with CC and CoreXchange and not him.
Posted by astutiumRob, 11-13-2013, 01:59 AM

Quote:

Originally Posted by hosting_we3cares

I have been discussing about such child running companies running away and the precautions to be taken over here.

This particular thread is about a host who is/was an actual 'company', so not your typicial kiddie-host

Quote:

Originally Posted by hosting_we3cares

If each and every company submits the LTD details at WHT

The information about registered companies is all public, so nothing needs submitting to a non-elected body who'd have no authority over them anyway :p
Posted by hosting_we3cares, 11-13-2013, 02:04 AM

Quote:

Originally Posted by astutiumRob

This particular thread is about a host who is/was an actual 'company', so not your typicial kiddie-host

The information about registered companies is all public, so nothing needs submitting to a non-elected body who'd have no authority over them anyway :p

I agree that each and every company registration is public. Still there are lot of companies which aren't registered yet and can run away at any point but still claims themselves as company.

People who doesn't have much knowledge falls for it, if WHT restricts them from advertising it can be reduced for sure.

As of now, it is enough to have a website and WHMCS to start a hosting company and close it back.

This isn't an one time process, and it is a step by step process which needs to be healed gradually.
Posted by cd/home, 11-13-2013, 02:33 AM

Quote:

Originally Posted by hosting_we3cares

I agree that each and every company registration is public. Still there are lot of companies which aren't registered yet and can run away at any point but still claims themselves as company.

People who doesn't have much knowledge falls for it, if WHT restricts them from advertising it can be reduced for sure.

As of now, it is enough to have a website and WHMCS to start a hosting company and close it back.

This isn't an one time process, and it is a step by step process which needs to be healed gradually.

Company registration and going under or ceasing trading are completely different things many genuine multi-million dollar companies have gone into problems all over the world does that mean they should branded kiddie, What about the banking system when they virtually went completely under. I guess there kiddies too? Why you so bothered about what others are doing?
Posted by astutiumRob, 11-13-2013, 02:56 AM

Quote:

Originally Posted by hosting_we3cares

Still there are lot of companies which aren't registered yet

If they're not registered they're not a *company* - they might be a 'firm' or a 'business' but the term company (in both the US and the UK) has a specific meaning

I know there are plenty of fantastic 'sole-traders' serving their customers professionally - many well established hosts started out like that before they incorporated and expanded.

However, as with any other purchase of a service, the client should do some basic due-diligence before handing over the cash, and dealing with an Ltd or Plc does _tend_ to provide more protection to the consumer, and _less likely_ to simply vanish overnight (as hosts do every day!)

Greed however does blind people - ridiculously cheap deals IME come at a significant cost in the end - yet _daily_ I hear from hostee's who have lost all their data because the 99p/year hosting account they bought on ebay is no longer online ...
Posted by FrapHost, 11-13-2013, 03:29 AM
Some speculates that this is due to a security breach, let's wait for shardhost's side on this.
Posted by hosting_we3cares, 11-13-2013, 03:50 AM

Quote:

Originally Posted by cd/home

Company registration and going under or ceasing trading are completely different things many genuine multi-million dollar companies have gone into problems all over the world does that mean they should branded kiddie, What about the banking system when they virtually went completely under. I guess there kiddies too? Why you so bothered about what others are doing?

I am not bothered about what others do but I am bothered about the illiterate people who are suffering because of this. This forum is open for suggestions and recommendations.

Discussing such topics can some times be the start of a new concept or solution.
Posted by hosting_we3cares, 11-13-2013, 03:54 AM

Quote:

Originally Posted by astutiumRob

If they're not registered they're not a *company* - they might be a 'firm' or a 'business' but the term company (in both the US and the UK) has a specific meaning

I know there are plenty of fantastic 'sole-traders' serving their customers professionally - many well established hosts started out like that before they incorporated and expanded.

However, as with any other purchase of a service, the client should do some basic due-diligence before handing over the cash, and dealing with an Ltd or Plc does _tend_ to provide more protection to the consumer, and _less likely_ to simply vanish overnight (as hosts do every day!)

Greed however does blind people - ridiculously cheap deals IME come at a significant cost in the end - yet _daily_ I hear from hostee's who have lost all their data because the 99p/year hosting account they bought on ebay is no longer online ...

That's true but even for a firm there would be written document which is attested. There are lot individuals who are serving very well to the market at the same there many cheats spoiling the market.

Not all the customers are doing their best research or may have the knowledge enough to do it. They search it on google and finish their purchase on first or second page without any background work.

Hence if WHT prepares a list of registered hosting & server management companies, it would help them a lot. As of now, there is a WIKI which has the list but in that list any one can add themselves which shouldn't be the case. As I repeat this is just a suggestion to improve the market and help people.
Posted by cd/home, 11-13-2013, 04:00 AM

Quote:

Originally Posted by hosting_we3cares

That's true but even for a firm there would be written document which is attested. There are lot individuals who are serving very well to the market at the same there many cheats spoiling the market.

Not all the customers are doing their best research or may have the knowledge enough to do it. They search it on google and finish their purchase on first or second page without any background work.

Hence if WHT prepares a list of registered hosting & server management companies, it would help them a lot. As of now, there is a WIKI which has the list but in that list any one can add themselves which shouldn't be the case. As I repeat this is just a suggestion to improve the market and help people.

WHT is a forum not an industry regulator its a place people gather to chat, make friends and talk industry related stuff thus it is vendor neutral as it stands repeat offenders are banned from advertising on this board past history shows in recent months several have been banned as part of there operation of a shill ring. WHT even censors the names of REAL bad providers who have a repeat history of doing wrong too.
Posted by CBH-Nick, 11-13-2013, 04:01 AM

Quote:

Originally Posted by hosting_we3cares

We need help from WHT moderators. If each and every company submits the LTD details at WHT at least, if they don't refund the client, we can try to trace them. I'm really not sure whether the address given above is valid and the clients are gonna get their money back and if they do, its great..

It doesn't matter if they're registered. They can still close their doors at any time. Even if you do trace them down, what are they going to say? Probably "go pound sand". When a registered business closes its doors and declares bankruptcy, most of the time it only helps the owner(s) and does nothing to the customers. I guess there's the option of going after them in court, but, have fun paying all the lawyer fees, dealing with being on the other side of the border (if you live in another country), and after it's over with your probably going to wish you never started. WHT has different memberships and that can help figure out if people are fly by nighters, but that still doesn't mean they won't go out of business.
Posted by hosting_we3cares, 11-13-2013, 04:03 AM

Quote:

Originally Posted by cd/home

WHT is a forum not an industry regulator its a place people gather to chat, make friends and talk industry related stuff thus it is vendor neutral as it stands repeat offenders are banned from advertising on this board past history shows in recent months several have been banned as part of there operation of a shill ring. WHT even censors the names of REAL bad providers who have a repeat history of doing wrong too.

Exactly, WHT bans those who over rides the protocols. But how can we avoid such companies from cheating people?

Background verification of the company before signing up is the best solution, but apart from that any thing can be done by people over here to control it?
Posted by hosting_we3cares, 11-13-2013, 04:06 AM

Quote:

Originally Posted by CBH-Nick

It doesn't matter if they're registered. They can still close their doors at any time. Even if you do trace them down, what are they going to say? Probably "go pound sand". When a registered business closes its doors and declares bankruptcy, most of the time it only helps the owner(s) and does nothing to the customers. I guess there's the option of going after them in court, but, have fun paying all the lawyer fees, dealing with being on the other side of the border (if you live in another country), and after it's over with your probably going to wish you never started. WHT has different memberships and that can help figure out if people are fly by nighters, but that still doesn't mean they won't go out of business.

Very good practical answer. We know that this can't be avoided but it would be great if there is a solution to control or reduce it.
Posted by GNG-Zane, 11-13-2013, 05:18 AM
Interesting never saw this coming!

They have been around for a while I feel for everyone and I hope something works out.

A while ago we had ceased our own gaming division and we feel for every customer of daddy cheese/ shard gaming and it could have been handled better.

Zane
Posted by Mikeambrose3, 11-13-2013, 12:49 PM
ShardHost is the same company is DaddyCheese and ShardGaming (I believe) as they all shutdown the same day.
Posted by WebHostDog, 11-13-2013, 12:56 PM
Wow 21K pounds in debt?
Posted by httpCORE, 11-13-2013, 02:20 PM
To Whom It May Concern

Shard Hosting Solutions Limited

Thank you for your recent email. We were asked to undertake a review of the financial affairs if the company and following the review it was evident that the company did not have sufficient cash resources to continue trading. Our advice therefore was for the company to cease trading as soon as possible.

Application for Refunds

Any person allegedly due a refund for prepaid services is effectively an unsecured creditor of the company. There are insufficient funds to meet the liabilities due to unsecured creditors and therefore no refunds will be possible.

There being no assets or funds available it is unlikely that the company will enter into a formal insolvency procedure.

Further action for recovery of alleged refunds will therefore prove futile.

Server Requirements and Back Up.

The director has asked us to issue the following statement:-

“Under the terms of service you are responsible for your own data and backups. It was hoped that you would have had longer to take any additional backups you may require; however, upstream providers made a decision to withdraw their services as soon as the announcement was made that the company had ceased trading. European services should be reachable for backup collection; you should take a copy of the data immediately as the length of time that these will be available is uncertain”.

We cannot offer any further information at this present time.

Yours faithfully

Baverstocks
Posted by Darthkatzs, 11-13-2013, 02:29 PM

Quote:

Originally Posted by WebHostDog

Wow 21K pounds in debt?

No, they had 21K Pounds in the bank (from the last report)
Posted by Martin-D, 11-13-2013, 03:17 PM
I hope some of these affected customers go after Marc and Sarah White. You wont get anything out of them directly but make their life hell.

Nothing worse than people hiding behind an accountant because they've seriously cocked things up.
Posted by domainbop, 11-13-2013, 05:09 PM

Quote:

Originally Posted by Martin-D

I hope some of these affected customers go after Marc and Sarah White. You wont get anything out of them directly but make their life hell.

Nothing worse than people hiding behind an accountant because they've seriously cocked things up.

The legal entity the customers had a contract with was "Shard Hosting Ltd" not "Marc and Sara White" so any action a customer took for breach of contract/failure to provide services/data loss, etc. would have to be against the company not its directors.
Posted by thedediguy, 11-13-2013, 06:28 PM
Now this is just shocking, you should of contacted a company even to take over your clients free before your servers go offline, or even sell them, seriously, what the, some people.
Posted by cd/home, 11-13-2013, 06:41 PM

Quote:

Originally Posted by domainbop

The legal entity the customers had a contract with was "Shard Hosting Ltd" not "Marc and Sara White" so any action a customer took for breach of contract/failure to provide services/data loss, etc. would have to be against the company not its directors.

Yup, Having a company mitigates liability.
Posted by Mad_matt, 11-13-2013, 07:54 PM
i want to be shocked, but as this happens monthly, i just dont know what to say.
but they should be held legally liable for their actions. Not only that, but if they had ANY morale fiber at all, they could have found homes for their clients (and in doing so would more then likely would have been able to get enough cash to pay off debts). Additionally, they would have been able to give the clients more time to themselves move on, or they could have (1 month earlier) tried to raise prices in order to be sustainable.

HOLD THEM ACCOUNTABLE, otherwise they will be by christmas.

Look at EIG, its proof that no matter if you are a $2 company, or a $200million company, there is someone standing by willing to take over your business.
Posted by mfollett, 11-14-2013, 07:03 AM
I am just surprised that the story made the Register and the WHIR as I've never even heard of ShardHost.
Posted by dazmanultra, 11-14-2013, 07:33 AM

Quote:

Originally Posted by domainbop

The legal entity the customers had a contract with was "Shard Hosting Ltd" not "Marc and Sara White" so any action a customer took for breach of contract/failure to provide services/data loss, etc. would have to be against the company not its directors.

Quote:

Originally Posted by cd/home

Yup, Having a company mitigates liability.

Not if the company continued to trade and offer services for sale whilst they were insolvent and knew that they couldn't fulfil the term that the client was signing up for.
Posted by cd/home, 11-14-2013, 09:07 AM

Quote:

Originally Posted by dazmanultra

Not if the company continued to trade and offer services for sale whilst they were insolvent and knew that they couldn't fulfil the term that the client was signing up for.

Who in there right mind would do that?
Posted by dazmanultra, 11-14-2013, 09:16 AM
It wouldn't be the first time in history that a company has taken money for services to cover the cost of services already promised to existing customers. Such companies are fine when they are growing and getting customers on board but as soon as that growth tails off they will have major cash flow problems.
Posted by cd/home, 11-14-2013, 09:20 AM

Quote:

Originally Posted by dazmanultra

It wouldn't be the first time in history that a company has taken money for services to cover the cost of services already promised to existing customers. Such companies are fine when they are growing and getting customers on board but as soon as that growth tails off they will have major cash flow problems.

Which is complete idioticy and irresponsible. The likes of MFI come to mind and we all know what happened to them.