FireOne to close Canadian operation?
A source inside the payments processing company FireOne has reported that the company is considering closing it's downtown Montreal based operation.
"Close to 90% of the company?s income was derived from US customers. After FireOne said they would no longer take US business the impact was felt right away. " the long time FireOne employee said.
A recent Sharecast report indicated that FireOne had slumped to an all time low in Q3 after recording a non-cash impairment charge of $78.4 million bought about by the new US Unlawful Internet Gambling Enforcement Act.
"The company was in talks with one group about sale of their U.S. business, but that went no where" The source went on to say: "I have been with the company since early 2001. I saw our call centre go from 70 people to 7 in the months after September 11. We came back from 911 where many companies couldn't. There were a few bumps in the road sure, but then we went to the AIM in June 2005 with Mitch."
Mitch Garber is largely credited with developing FireOne into 700,000 customer business and the successful float of the company. He left FireOne to take the position of Chief Executive Officer of Party Gaming in April of 2006
"To the company?s credit they tried to hire back as many of the staff they let go in 2001. FireOne has talent, but I just can't see FireOne getting through this crisis. "
One recent departure from FireOne was Sean Briscoe, who joined Dynasty Gaming as their Chief Information Officer.
posted by Ian of egaming pulse
