Thursday, February 14, 2008

More BS from the FreeCapitalist, From Active Rain Blog

More BS from the FreeCapitalist


FranklinSquires Companies, LLC announced Monday February 11th 2008 that it was downsizing its operations (including those of two of its portfolio companies New Castle Holdings, LLC and Hill Erickson, LLC), closing the doors of its corporate headquarters at 85 Eastbay Blvd in Provo, UT and refocusing a much smaller operation in a yet to be announced location. In November and December of 2007 the company had announced a series of reorganization efforts to help the company focus on its core areas of competence.

Throughout 2007 the company struggled to manage the affects of a collapsing real estate market and increasing costs associated with what Koerber describes as "a malicious, and politically motivated" effort by a few private citizens working in concert with State of Utah regulators in the Department of Commerce. Recently, the abusive practices of the Utah Department of Commerce against other businesses in the state have begun comming to light.

Boss's exit doesn't quell claims securities division is amok by Steven Oberbeck (Salt Lake Tribute) 2/12/2008

Utah's Security Chief is resigning Under Cloud by Jason Lee (Deseret News) 2/6/2008

The company currently maintains a substantially interest in real estate holdings despite the market downturn and over the course of the last several years the State regulators have not made any official allegations, filed any administrative actions, or made any civil or other charges against Koerber, company, or the company itself.

"This is not the kind of business environment that makes it worth FranklinSquire's efforts to continue to grow its business or to continue New Castle Holdings, LLC and Hill Erickson, LLC. It is easier for us to downsize, and re-focus the efforts of our core people on other projects" Koerber explained. "I would rather wind up the affairs of FranklinSquires, New Castle and Hill Erickson, pay all our creditors - and refocus my energy and the energy of those who are interested in working with me on something where we can make a more powerful difference in the world. I'm sure there's a chance the name FranklinSquires might someday again re-enter the business community, but for the time being its time to wind thing down, clean up the loose ends, make everyone whole, and focus our energies elsewhere."

In the estimation of its officers, the company has sufficient assets to ensure that where it has legitimate interests, part of winding down its affairs will be to ensure that no stone is left unturned including seeking compensation for damage done to the business by the efforts of others.

FranklinSquires has employed more than 230 Utah citizens since its founding in 2004.

For Financial Issues contact the office of:
Rick Koerber: 801-722-9295

For Legal Issues, contact the company's attorneys:
Mackey Price Thompson and Ostler at 801-575-5000
57 West 200 South
Salt Lake City, UT 84101

02/14/2008 10:21 AM by More BS

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