MPC Corp. announced last week it would permanently shut down and immediately lay off 147 employees.
The Nampa PC manufacturer’s remaining 51 employees will be retained solely to assist the company in liquidation and will lose their jobs in coming months, MPC said in a letter to the Idaho Department of Labor provided under the federal Worker Adjustment and Retraining Notification Act.
The news marks a dismal end for the once-promising company, originally known as Micron Electronics and then MicronPC. Boise semiconductor giant Micron Technology started the unit in 1991 and then spun it off as a separate company in 1996. It came to specialize in selling computers to the government, education, and small to mid-size business sectors.
The company hit several rough patches in its history, including two years of losses before Gores Technology Group, the Los Angeles-based tech-turnaround titan, acquired the company in May 2001 and laid off 600 people. MPC then experienced four profitable years before a July 2005 acquisition by HyperSpace, a 4-year-old publicly traded company based in Colorado. The combined company faced liquidity constraints, declining revenue, unprofitable operations and negative operating cash flows.
MPC then gambled big in late 2007 when it acquired Gateway’s professional computing segment, three times its size in terms of revenue.
The combination was beset by problems, and MPC announced 200 job cuts on Oct. 16 and another 210 on Nov. 5. The company filed for Chapter 11 bankruptcy protection on Nov. 7, which would have allowed it to reorganize with new financing.
The company struggled to find a new lender, and between Dec. 4 and Dec. 12, a substantial portion of its sales force resigned without prior notice, which made it impossible to continue any viable business operations, the company said in its letter to the labor department.
“MPC has determined that the state of the credit markets and its current financial condition leaves it with no choice but to liquidate its assets,” the company said in the letter.
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7 Comments
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The Dec 12th portion is BS - they had an entire force of sales reps in the commercial space that could sell anything they needed sold. They were not utilized. Look at MPC contracts and see if this isn't being said just to meet another loop hole... As an MPC employee - they had other options. Comment By booboo
Monday, January 5, 2009 @ 12:39 AM
Well here is my story... MPC has had my computer at an undisclosed repair facility since 10/14/08. Where is my computer, and will I be getting it back? Will it be repaired? I have been trying to get a hold of someone at this company since October. My computer basically has been stolen by this company. Comment By Aaron Domino
Monday, January 5, 2009 @ 5:01 PM
And what of all the companies they ripped off? They took Prism Pointe for over a million dollars and thats just one company they ripped off. Their actions have created a snowball effect..causing these companies to lay off employees too. Comment By anonymous
Monday, January 5, 2009 @ 7:20 PM
Not that it will matter now, but has anyone posed the question of why a substantial portion of its sales force resigned ? Hmmmmmmm...... When more than one person resigns at once, red flags should go up. Comment By Calvin Pardue
Tuesday, January 6, 2009 @ 3:24 PM
Calvin, what are you implying? Why do you suppose a substantial portion of the sales force resigned?? Comment By GTWSD
Wednesday, January 7, 2009 @ 12:00 AM
Obviously a large portion of the sales force resigned due to the fact that they could no longer "sell" a product that was unable to be manufactured or shipped. No real conspiracy there. Comment By Why do you think the sales force left?
Wednesday, January 7, 2009 @ 1:29 PM
Agreed. The sales force was "forced" to sit around and do nothing for the last few months. No conspiracy at all. Nothing else to do but leave and find stable fulfilling positions elsewhere. Comment By GTWSD
Friday, January 9, 2009 @ 11:08 PM
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