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GalaxyHostPlus - CLOSING DOWN - TIME TO CHARGE BACK
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I'm not sure why people were thinking a host loaned him the money or gear. This was what I immediately thought and the only thing that makes sense lol.
Because that's how Burst went down. Volumedrive (what's their new name now?) owed quite money to them in rent.
The rumored amount was in the $150k - $200k range.
That's just the VD experience though. They stuck that guy for $20k and have since rotated paypals.
Francisco
maybe, I guess with English not being his first language it may just being communicated wrong, I just read "in Big Debt over 30K for current server usage" and assumed that meant the debt was for server rent, then added OVH and Hetzner to the equation and though... erm, doubt it.
Hopefully he took the debt out through the equivalent of a US LLC (not sure where he's from), so he can void the debt by declaring total bankruptcy. That is what these things are designed for after all.
I lost track of that, did they actually end up keeping the money?
There was no further update, but since they changed paypal, chances are that he kept the money.
The transfer failed to the client.
VD likely contacted their bank denying the funds and was just smoke screening.
Francisco
How would a start up wth no security get such loan ? No chance.
No one mentioned yet, but it’s also an option that the figure might be vastly exaggerated to ‘justify’ the actions.
If "vastly exaggerated" is 30k, that's sad.
I don't know how other countries work, but in the United States you can sort of finesse it.
You can in a sense, use the owners credit but have the loan under the businesses name.
With that being said, the more you differentiate the business from personal is clearly better because LLC isn't a catch all if you do things such as that, it can come back to bite you.
Who?> @Clouvider said:
30K in directors remuneration would still technically be debt.
I think I mentioned it without mentioning it
What I mean is that 30k is not exactly large. No serious business would consider 30k "huge", debt or not.
Agree that any debt is bad ( especially in hosting ), but if you're a serious business and can't make it, and exit with just 30k in debt (which is questionable at best) then it's almost a 'win'.
Also, define debt? Mortgage count? If yes, than yes I have more than 30k in debt.
We actually agree on something!
It could also be that being 30K in debt, they decided that there is no chance to turn this around and it’s better to throw in the towel now, instead of when it’s 300K. Or even worse.
Hey Guys,
To to clear things up we had agreement with German DC to keep our services running while we trying to fix financial up. Sadly we tried increase the prices which killed the sales. After we put prices back to normal traffic was already lost. we end up on - 30,081.70 €
and with final notice to cut down the services by Wed. Probably was mistake to for keep going on this. sadly last 2 Months were horrible including support of strugling to cover OVH bills as they don't wait and suspend the service right away. plus some issue on the nodes which killed us totally.
It's better to end up with 30k than 300k as mikho mention. However such amount is large for me and probably will take few years to clear the balance up.
Sad to see work lost since 2014 however I got valuable experience which will help me to find good position.
Company was started on $10 Dedicated Server from online.net so it's still impressive to survive all these years.
Thank you for all the support and sorry for disappointment and horrible service in last 2 -3 months.
Now it's time for fresh start and hopefully don't make mistakes like this one.
Will miss the LET Humour
Farewell
What's the name of the German DC you are talking about?
GhostNet Gmbh
Really great DC, Really recommend them awesome guys.
It takes balls to come in here and give further explanation. I admire that. I wish you all the best!
Take care of yourself, dude.
You don't sound like the typical narcissist summerhost kid we love to rip into.
Thank you guys. Nothing really to hide. Just big fail on my side I let it go for that long. well officially called Deadpool now.
I learn everyday from the mistakes sadly this one is expensive mistake.
I hope also best for LET, spend really great time here.
I will probably put some cheap licences for sale after this month so I be back, nothing big.
WHMCS I will hold client area active for a year incase of domains transfers.
Well, you learn from failure, going bankrupt happens, take that what you learned and start again.
Good to hear. And no worries man. You'll get over it. Running a business and keeping it afloat is hard. Especially in this business. Let's not forget, the majority of people starting a business do not make it in the end. There's no shame in that.
Thank You @Saragoldfarb
Hopefully if I ever try run business again at least I know where to start and what to avoid.
Hopefully some LET providers will get new client's as I will forward my client's here.
PS: I'm not interesting in selling data of my client's Im getting such PMs now.
Privacy is top priority so it all dies here. At least I can guarantee this to my client's from my Privacy agreement.
Sad to hear what happened to you, good luck for the future.
Ever tried. Ever failed. No metter.
Try again, fail again, fail better.
I'm not saying they should have stayed open and racked up even more debt. Probably should have shut down earlier and given greater notice to clients to allow time to migrate and possibly reduce the debt.
But 30k in most places in the developed world is not a huge amount for any propper business. For an individual, yeah it can be alot for some people, but not for any real company.
I'm not trying to put down GHP or anything, just pointing out a fact that 30k in the world of business is pretty small. If the losses are just 30k, its quite modest all things considered.
I assume your clients are all budget VPS and the DC were not interested in taking your clients on directly? Or your servers were not profitable enough to sell to another host?