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December 17, 2009

Looks like Vigilar is toast

I tell you it is days like today when I think that being a blogger is at least a little bit like being a real journalist. I wrote about rumors swirling around Vigilar this morning and bits and pieces started pouring in. Following the editorial guidelines of the ashimmy blog, I waited until I had multiple confirmations of many of the alleged facts. I now  feel confident enough now to report.  So here is what I have found out:

It seems that Vigilar has been having issues for some time.  When Mike Dell and some other key folks left a while ago, the company was really running on borrowed time.  However a white knight in the form of a company from India came in with the promise of a sizable investment. The management team was off to the races.

Like so many others, the promise of OPM (others people money) had the exec team dizzy with visions of sugar plums and fairy tales. They expanded pretty quickly, opening offices and ramping up staffing.

The bad news is reportedly, the second check from the white knight bounced and the proverbial stuff hit the fan.  Without the cash infusion all of the growth spending had to be curtailed. The Vigilar team found themselves in the position of being owned by an empty shell of a company.

They had to extract themselves and so the management led “buy out” in June of this year.  They really just separated from the sham company that had promised them money. It is unclear if they raised anymore money at that time. Some say they went on a family and friends fundraising tour and secured some funds to keep the lights on a bit.

In any event, word is that at that point they began shopping the business hard. However there were no solid takers. Others say there was one serious buyer, but the deal fell through.  No word on who the buyer may have been.

About a month and half ago or so there was a flood of resumes from Vigilar people.  Some were hired by a firm up in Chicago.  Others are still looking.

At this point the VAR and services part of the company is pretty much done and the employees gone.  They are still trying to figure out how to save the Intense School part of the business.  Not sure of the corporate structure and if that is even possible.

Hard to figure out how you can run a services business out of business unless you just overspent hoping that if you build it, they will come.  Anyway it looks like Vigilar is a name that will fade into the history books.

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