Media intelligence firm VMS shuts down
August 26, 2011 by Beth Krietsch
NEW YORK: Integrated media intelligence provider VMS went out of business today with the loss of up to 200 jobs, the company confirmed.
The announcement was made via a company-wide conference call at noon today, during which the company's approximately 200 employees were notified they were being laid off.
On Wednesday, VMS received word that Capital One bank would no longer finance the company, due to its recent financial and revenue situation. Company CEO David Stephens explained to employees during today's conference call that various options for staying afloat were explored, but the company ultimately decided it would need to shutter its doors.
"The revenues were not covering the expenses and the bank decided it did not want to continue to extend its line of credit," said Darren Drevik, who served as communications and marketing director for VMS before the company closed.
The closure was mainly a result of two factors: a weak economic climate and a steady loss of customers throughout the past few years due to competition in the marketplace. The company made efforts to stay competitive through launching new services, but the attempts did not suffice.
Stephens highlighted in his conference call with employees the company's late entrance into social media monitoring capabilities, despite the industry's intense focus on social media in recent years.
Claims from business partners, customers, and other people and entities owed money by VMS will be managed through a bank trustee enlisted to handle the closing, Drevik said. He added that all VMS customers will need to find another monitoring and intelligence solutions provider.
"We have strong relationships with our customers and now they are going to have to scramble to find other providers like Critical Mention and Cision to provide them with the services we've been providing," he said. "They are going to discover they instantly have a need that has to be filled and all these other companies are going to have to step in and fill the void."
VMS had offices in New York; Washington; Dallas; Tucson; Louisville; and Presque Isle, ME.
Edelman hires former SoFi comms leader Jim Prosser
Maggie FitzPatrick to leave Exelon in June
These 23 factors will determine your reputation
Pfizer's Kirsty Graham named CEO of Edelman Public Affairs
And the most trusted brand in America is...