I did some research on the MPC/Gateway issues and found out some fun facts:
- MPC acquired Gateway's Professional unit for $90 million last October.
- MPC/Gateway is in a feud with one of their primary electronics providers, Flextronics, who has stopped shipping to them (several months ago) due to past-due contracts. Similar situations now exist between MPC and most of their suppliers. That's right, they haven't been receiving parts to cover warranty claims for several months.
- Two months ago MPC was sued by the company that handled their on-site service repairs, for defaulting on payments for the previous three months.
- In a move to recoup some money, MPC sold off their spare parts stores to one of their electronics providers - apparently this still did not resolve the dispute, so now MPC has no spare parts, in addition to a supplier who still isn't shipping to them.
- Gateway owes UPS and FedEx a combined 7 million in past-due shipping costs. Neither agency is presently willing to ship anything for MPC and with DHL folding last month, that just leaves the US Post Office.
- People who sent in machines for warranty service, some as far back as July, have been on hold waiting for 'back-ordered' parts so that MPC could repair their machines. Those people are now finding that they cannot get their machines back because they cannot get an employee on the phone willing to help them, let alone finding a shipper willing to pick up the broken machine and get it back to them.
- From the start of the year to October, MPC has lost nearly $100 million.
In case you are curious, there is a pretty good account of things at:
http://www.idahostatesman.com/business/story/564259.html
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