Diablo Management Group
The Diablo Management Group (DMG) is company based in San Ramon, California that provides management, advice and services to companies with financial troubles. Management services include bankruptcy management, closure management, interim management and crisis management.[1]
DMG is hired by faltering companies to terminate employees, execute and enforce lay offs, terminate customer agreements, and close offices. In October 2008, when Digital Railroad was unsure if it could continue to afford its servers, they hired DMG to terminate their business operations. Digital Railroad executives were therefore unreachable and all inquiries were forwarded to DMG.[2]
DMG also profits arranging for the sale of a failing business and by buying parts of companies as they go into bankruptcy, and later re-issuing or re-selling them.[3] DMG positions first in an advisory role, as in the case of MobileStar, and then uses that position to take over the company when it cannot be turned around.[4] This was done by replacing the MobileStar CEO with a DMG employee, in this case DMG CEO Richard Couch, as the interim CEO.[5] Another successful strategy of DMG is, as was the case with Pets.com, to have all the officers and directors of a company resign and have Couch retained to act as sole director of the company, act as CEO of the company's holdings, and handle all remaining affairs.[6]
In 2000, when Riffage.com went under, DMG took over its assets, which included ownership and management of the Great American Music Hall.[7]
DMG was founded in 1986.[1]
References[edit]
- ↑ 1.0 1.1 "Diablo Management Group: Private Company Information". Retrieved 2009-01-26.
- ↑ "Memos from Diablo Management Group DRR Memos". Retrieved 2009-01-26.
- ↑ "QVDS Is Being Pulled From Bankruptcy". Retrieved 2009-01-26.
- ↑ "Wi-Fi provider MobileStar closes its doors". Retrieved 2009-01-26.
- ↑ "VoiceStream to Acquire MobileStar Assets". Retrieved 2009-01-26.
- ↑ "Pets.com announced Today that Stockholders Have Approved the Plan of Complete Liquidation and Dissolution of the Company and the Change of Corporate Name". Business Wire. 2001-01-16. Retrieved 2009-01-26.
- ↑ "Riffage.com Pulls the Plug". Wired. 2000-12-08. Retrieved 2009-01-26.
External links[edit]
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