I just got off the phone with Verari CEO David Wright, who took a few minutes to talk with me this morning about what his company is going through. It was an interesting conversation.
Wright describes Verari as being in a “controlled reorganization,” which is consistent with what employees were told at the all hands meeting last week (going by the comments on the original story, anyway). According to him, this is not a Chapter 7 or 11 proceeding, but it is a reorganization, and he expects it will take about six weeks to resolve.
Also, Wright was at pains to point out that the doors are not closed. Although he did say that most of the staff is gone today, there are people in the office working on a way forward — “some on payroll, and some not.” These folks are working on a support plan for existing customers which Wright hopes to have on the web site “today or tomorrow,” as well as on how to fill existing orders. Verari’s support comes largely from business partners, so they may actually be able to come up with something there.
Although he isn’t able to comment on much at this point, when I asked about how the business got into this shape he ascribed it to a lot of factors, including a credit market problem. Evidently Verari’s is a capital intensive business, especially the container business, and according to Wright they couldn’t get the cash to service their “substantial backlog.”
I also asked about a comment left on GigaOm about a potential new business rising from Verari
A rumor is circulating that a bunch of “key employees for the container business” will be rehired next week and be part of a New Company started by one of the key investors in Verari… the current stockholders, investors, and so on are out of luck, but key members of Verari management are going to that new company. Seems like a deal for those involved, if true.
Wright declined to comment, but did commit to staying in touch with us.