SEL reports that Zunch Communications has filed for bankruptcy, owing more than $750,000 in debts, including $200k+ to JupiterMedia.
The company hasn’t been the same since most of its executive staff departed to start a new venture.
SEL outlines almost 10 years of acquisitions in the SEM space, and starts a new chapter of those that bit the dust – starting with Zunch (maybe they should add WebSourced).
Here’s Zunch’s filing (pdf).
UPDATE: Zunch sent as some additional information, which is exactly the same as posted in an update at SEL. I’m not an expert in bankruptcy, but it appears a new corporation – Zunch Worldwide – was formed and will acquire the best parts of Zunch Communications. Zunch WorldWide assures us that no employees have been laid off.
UPDATE 2: Rock-on Kevin Newcomb! He’s not afraid to be a little more blunt about the whole Zunch Worldwide buying Zunch Communications dance…
While clients that stayed on with Zunch Worldwide were not affected, any unsecured creditors were basically hung out to dry, left to muddle through a bankruptcy process that is bound to be fruitless, since the Zunch Communications entity has no assets to speak of, other than the payments that Zunch Worldwide will make over a period of time. Zunch is spinning this bankruptcy as a part of a larger trend coming to the industry, but others say that’s not the case.
For the record, I don’t think this is a changing trend. Bad SEO companies will likely fail, while the good ones will flourish – nothing’s changed!