Is Geeks On Call Done?

Geeks On Call has been found in default and received a notice of impending foreclosure from a senior creditor on a note secured by the total assets of the corporation.

The Geeks On Call (GOC) saga took a new turn in October, with the company's acquisition by Intellisuites. Intellisuites is owned by Glenn Davis, a Virginia Beach city council member. The death spiral had begun.

This move was not totally unexpected. GOC had failed to file required financial statements for almost a year. Former CEO (and founder) Richard Cole is no longer connected with the operation.

As recently as 2006, Entrepreneur.com ranked GOC as the 30th fastest growing franchise in the United States.

The GOC carcass included 29 remaining employees, and 57 franchise agreements. Richard Artese, vice president and CIO, and Keith Wesp, vice president of finance, were still employees of the company.

Geeks On Call (GOC) was formed in Norfolk, Virginia in 2001. The company was founded by Richard Cole, an advertising executive and Michael Joynes, a personal injury attorney. They currently operate under the names "Geeks On Call" and "CallTheGeeks.com". The company was formerly known as "Lightview".

Historically, GOC was organized differently than the typical Geek operation. Most of the storefronts were franchises (owned locally, and affiliated in a partnership with GOC).

Earlier this year, GOC modified its organization. It now appears to have been an act of desperation. The company moved one-time employees who worked at company owned locations into contractor status. Franchise locations still operate under the previous model.

GOC utilized OnForce (a contractor broker similar to Ebay) to service many of its customers. The reason for the decision was that Geeks On Call, because of the limited number of storefronts, does not have comprehensive coverage of the United States, only offering services for less than half of potential customers. This problem has become worse with the failures of so many franchises, and the recent parting of ways with 56 franchised territories. OnForce will fill in the considerable gaps.

The company earlier this year faced suits filed by 10 franchise owners, claiming fraud, among other allegations. Those suits were dismissed from Norfolk Circuit and most of the plaintiff franchisees were released from the GOC system along with the fees they had paid into the system.

Geeks On has earned the Geeks Informed Smell Test rating of Somewhat Stinky.Call