Epic May File Bankruptcy, Assetts Being SoldWritten by Pace Lattin
May 11, 2012 # 9:39 am # Industry News, Specials # 34 Comments
Performance Marketing Insider has learned that Epic Direct, formerly known as Azoogle, is currently being slated for closing and they are having discussions of bankruptcy. As of Wednesday, their entire staff has been laid off and a spokesperson with the company has confirmed that the company is currently winding down — and no more publisher payments have been made.
Additionally publishers have been informed not to send any more traffic to the company. The spokesperson confirmed that the decision about if the company will file bankruptcy is still being discussed by the board and any remaining few employees are not able to answer questions.
We have additionally been told by insiders that the company had faced enormous financial difficult this year with tens of millions of dollars of unpaid debts from a variety of companies not willing to pay their bills. This caused significant cash flow issues and with a growing publisher base worried about payments, traffic dwindled.
According to Mundo Media, they have bought assets from Epic Direct including domain names from their “host division” and several Epic Employees have already been hired by Mundo Media.
The social division and display division of Epic has already been spun out as a separate company, Kinetic Social, almost a year ago to purposely separate the businesses and liabilities.