Zunch Communications Files for Bankruptcy

Friday, April 27th, 2007 by Andy Beal

Zunch Communications Files for Bankruptcy

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).

If you’re in the Dallas area and have open positions for any displaced Zunch staff, drop me a note and I’ll give you a free listing on our job board.

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!

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8 comments on “Zunch Communications Files for Bankruptcy”

ex Zuncher Says:

April 27th, 2007 at 6:21 pm

“Zunch WorldWide assures us that no employees have been laid off.”

True – we already left.
Andy Beal Says:

April 27th, 2007 at 8:24 pm

Yeah, I figured that might be the case.
ex Zuncher Says:

April 27th, 2007 at 8:44 pm

No one should waste one more breath discussing the fall of SEO firms or problems in the industry. This is merely smoke and mirrors with a splash of distraction. In true style of the subject of this post.
3rd Eye Says:

April 29th, 2007 at 7:02 pm

Who laugh last, laugh best. Ex employees or anyone who only bless for evil tends to laugh at Zunch, but are not aware of that the rule is true for everyone — you can’t always have good luck.
4th Eye Says:

April 29th, 2007 at 9:01 pm

Why are there many stupid so-called SEO buffons around? Zunch bankruptcy is not a holiday for you. It’s sad to SEO business overall. Zunch fell down today, and you can’t tell when the bad luck comes to you.
one more Says:

April 30th, 2007 at 12:20 am

Zunch’s problems were not a matter of bad luck, but of mismanagement. The financial history of the owner proves revealing in this regard.
Andy Beal Says:

April 30th, 2007 at 10:21 am

Closing comments.
keeping clients in the dark is bad « All For You by Brian Keith Says:

May 1st, 2007 at 10:40 am

[...] Their homepage is business as usual, but here and here you can see that they just went bankrupt. [...]

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