Contributing writer

MPC Corporation in Chapter 11 — should Gateway customers worry?

analysis
Nov 18, 20082 mins

What are your rights when the company that provides support to your product goes out of business?

Eric forwarded me a press release about MPC Corporation, which handles Gateway’s business service and support. The announcement states, “MPC Corporation, and all of its direct and indirect subsidiaries … announced that they filed voluntary petitions for relief and reorganization under Chapter 11 of the United States Bankruptcy Code.” This announcement was made earlier this month.

MPC CEO John Yeros is quoted in the press release as saying, “Unforeseen issues surrounding our integration of the Gateway Professional business unit, combined with adapting the operations of our manufacturing partner to additional customized requirements have proven more challenging than originally anticipated, and have contributed to extensive losses. We evaluated all strategic alternatives, and concluded that the filing was necessary at this time.”

Eric was concerned about the situation because, he says, “At present, Gateway business customers have no warranty service or support. Nor is there any contact phone number to buy replacement parts.” Worrisome, indeed, if you are a business customer in need of support.

[ Learn more about how the financial crisis is affecting IT and the high-tech industry, plus what IT can do to help, in InfoWorld’s special report. ]

So I contacted Gateway for advice.

According to Lisa Emard at Gateway, this is nothing to worry about. “MPC has filed for Chapter 11 protection so that they may reorganize,” she told me. “But they are still obligated to provide support for the products they sold and acquired as part of their purchase of the Gateway Professional Business.”

I have watched a lot of companies go into Chapter 11 over the years and often, service improves as a result because management is able to take its eye off the financial deficit and focus on its core business. Of course, it remains to be seen if that will be the case here. So please let me know if any of you have issues with MPC and I’ll do what I can to get you sorted out.

Contributing writer

Christina Wood has been covering technology since the early days of the internet. She worked at PC World in the 90s, covering everything from scams to new technologies during the first bubble. She was a columnist for Family Circle, PC World, PC Magazine, ITworld, InfoWorld, USA Weekend, Yahoo Tech, and Discovery’s Seeker. She has contributed to dozens of other media properties including LifeWire, The Week, Better Homes and Gardens, Popular Science, This Old House Magazine, Working Woman, Greatschools.org, Jaguar Magazine, and others. She is currently a contributor to CIO.com, Inverse, and Bustle.

Christina is the author of the murder mystery novel Vice Report. She lives and works on the coast of North Carolina.

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