Hipcricket Files For Chapter 11 Protection
January 23, 2015 at 2:52 AM (PT)
HIPCRICKET has filed for Chapter 11 bankruptcy protection, agreeing to sell its assets to mobile-marketing company SITO MOBILE for $4.5 million in cash.
According to a HIPCRICKET statement, the company is seeking to maintain day-to-day operations and maintain employee benefits and payroll. SITO has agreed to provide $3.4 million in financing.
CEO TODD WILSON said in a statement, "While we have implemented various cost-cutting initiatives and explored a wide variety of strategic alternatives, the benefits of these efforts could not be fully realized and liabilities continued to mount. As such, the Board determined that a sale of assets via a court-supervised process provides HIPCRICKET the most viable option to protect our human capital and maximize recovery for our stakeholders. We are pleased that SITO Mobile has agreed to carry our business forward."
WILSON added, "We believe this partnership will provide a new foundation upon which to stand and brings together two best-in-class mobile marketing and mobile advertising solutions."