Updated 5/4/09 - See http://www.dotmed.com/news/story/8977 for an update on Med1Online's liquidation.
Original blog ...
We got the news yesterday that former FI Sales dealer Med1Online closed its doors on Friday, 4/10/09. On their http://www.med1online.com/ web-site, we found this message ...
MED1ONLINE4403 Table Mountain Drive, Suite BGolden, Colorado 80403
April 10, 2009
To our creditors:
We regret to inform you that Med1Online (the “Company”) will be terminating its operations on April 10, 2009. Due to poorer than expected financial results, coupled with the challenging state of the economy, the Company was unable to repay its secured indebtedness– in excess of $4 Million – to its lender, Colorado State Bank and Trust, N.A. (“CSB”), upon maturity. CSB holds a blanket lien on the Company's tangible assets. The Company has been unsuccessful in its intensive efforts to devise ways to generate the necessary cash flow to pay CSB or to restructure the payment obligations.
The Company expects that CSB will foreclose upon its security interest in, or exercise other rights with respect to, the Company’s assets and will be left with a substantial deficiency.
Sincerely,
Management
Well, isn't that just wonderful? FI Sales is one of Med1Online's creditors, and we will apparently lose some money as Med1Online closes. Of course we will continue collections efforts until our collections experts tell us it is a lost cause. We are not alone. As recently as last week we advised one of our competitors to limit their transactions with Med1Online after I had a phone conversation with Med1Online's founder, Scott Carson. Too late. Our competitor was about to begin the collections process with med1Online. We did invite them to join us and another company in a lawsuit against Med1Online. Too late now as Med1Online's doors are shuttered.
Was it the economy that sunk Med1Online? Perhaps that was a part. To me, it simply appeared the company was another example of an upside-down company ... top-heavy with highly-compensated management supported through highly-leveraged finances, but with insufficient sales. Hey, there's a great business model. The founder of Med1Online, Scott Carson, told me in a phone call last week that he personally lost millions in Med1Online. Well, boo-hoo. I wish I was in a position to have lost millions in a business venture ... and then I wouldn't have!
Med1Online is just another example of over-indulgence and excess that has contributed to the state our economy is in today. FI Sales is not on the fast track to the Fortune 500, but we are also debt-free and continue to grow, albeit slowly in this stagnant economy. Although we will lose some money due to the Med1Online closure, we will survive and continue on our current successful path.
So to Med1Online, rather than saying Rest In Peace, I offer Good Riddance.
