Sprint Spiral Towards Bankruptcy Continues!

Posted by A.E. Sheriff in Misc on February 28, 2008 2:18 pm / 7 comments

Sprint_logo The very predictable out of control spiral into bankruptcy is continuing.

Sprint Nextel posted a $29,400,000,000 dollar loss which is attributed to the write of value for Nextel that no longer exists. YES, THAT IS BILLIONS! Additionally, they have successfully managed to lose another 700,000 customers in the 4th quarter of 2007. Even the new CEO Dan Hesse didn’t know it was this bad. I wonder who he will fire next.

There doesn’t appear to be an end in sight for the huge number of customers leaving this tattered company so a good option would be to enter Chapter 11 Bankruptcy and shed all that debt. This would allow for vacating all the leases Sprint is stuck in around the country as well screw the employee’s with options and the current stockholders. Since a company culture is non-existent it probably wouldn’t hurt to due some massive forced layoffs as well. It is only a matter of time before something dramatic has to happen here, so stay tuned. Here is a link to the press release from Sprint for your enjoyment.

Sprint Press release

 


RELATED MORNINPAPER POST

Sprint Goes it Alone!
 Is Sprint Selling Nextel? Better Question: Who’s Going To Buy It?
 Sprint Could Be Close To Offloading Nextel
 SK TELECOM Looking to Buy SPRINT!!
 

7 Comments

  1. Mpaper says:
    February 28, 2008 at 2:57 pm

    Ahh yes, this is a sad state of affairs. I think they laid off their PR company first, now some guy in Oshkosh is handling it with a IBM think pad, Adobe Premier and “Marketing For Dummies” as his guide.

    Reply
  2. GoodThings2Life says:
    February 28, 2008 at 5:15 pm

    Ouch, definitely bad, but I still like both the phone and service.

    Even so, if Sprint caves in, at least I can move my phone to Verizon or Alltel.

    Reply
  3. Dan says:
    March 14, 2008 at 9:28 am

    Sprint has been an excellent wireless provider to my company for many years. Anyone who knows anything about financials knows that Sprint is very far away from going away bankrupt. It’s a fantasy of the monolopists Verizon and AT&T and their armies of lobbyists and lawyers. In the end, these two companies want there to be only two wireless choices in America, so they can raise prices and stall innovation.

    Reply
  4. Ben H Bennett says:
    March 14, 2008 at 11:28 am

    I do not think that the 3rd largest telecom is going to go bankrupat

    Reply
  5. The Sheriff says:
    March 14, 2008 at 4:25 pm

    Thanks for your comments. I appreciate your feedback but I want to remind everyone that a business that loses 700,000 customers a quarter can’t continue to be solvent. This is especially true after taking a 29.4 billion dollar write off. NOthing has been done to stop the bleeding and the current management team doesn’t have a clue about how to stop it. Does anyone remember the paging business. Every provider went filed for protection under chapter 11. Some did more than once. Including the biggest player at the time, PageNet.

    It is a sad but true story and only time will tell, but I beleive that BK is around the corner if they don’t get bought out.

    Sheriff

    Reply
  6. David Thompson says:
    May 3, 2008 at 3:42 pm

    I recently left sprint myself. It cost me $1,200 to get out of my contract, but it was worth it. I just couldn’t do business with the policies and secrets they have. However I didn’t have a problem with the cellular phone service, just the company that provided it is all. It does not surprise me that there are so many others leaving this company.

    Reply
  7. Tom Stark says:
    November 10, 2008 at 10:29 am

    Had nothing but issues with billing, customer service coverage, etc. I LOVE the fact that even though I canceled my service over a year ago (at a cost of $500… best money I ever spent with those guys) I still receive monthly bills showing that I owe $0. CLASSIC!

    Reply
 
 

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