Just a few weeks after filing for Chapter 11 bankruptcy protection, Solavei CEO Ryan Wuerch said that the company is doing better than expected.
“We’re actually doing far better than we anticipated,” he told FierceWireless, estimating that only around 5 percent of the company’s customers know about its bankruptcy filing. “We’ve had very little attrition.”
T-Mobile US (NYSE:TMUS) MVNO Solavei filed for Chapter 11 bankruptcy protection earlier this month, but said it will continue to operate normally while it restructures. The company launched service in the fall of 2012, and anticipates exiting bankruptcy later this year.
Solavei’s bankruptcy filing, obtained by FierceWireless, offers a surprisingly candid view into the MVNO’s business–which is rare, considering most U.S. MVNOs don’t offer much information on their customer numbers and revenues. According to Solavei’s bankruptcy filing, the company was founded in late 2011 around the concept of “social commerce.” Specifically, Solavei pays a $5 referral commission each month for every subscriber a customer personally refers to Solavei, and this monthly commission continues for as long as the referred subscriber remains a Solavei customer.
Under Wuerch’s direction, the company has grown to 51 full-time employees and an annual revenue rate of $65 million. The company has signed up a