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Is Helio store closing sign of sale?

We learn very on in school that correlation is not causation. So when Fierce Wireless sees a Helio store shut down, it doesn’t necessarily mean that the company is ready to go kaput. But considering what we’ve heard all week, it’s a strong possibility. The MVNO is said to be phasing out its retail operations, with the long-rumored merger with Virgin Mobile still just a rumor. According to the report by Fierce Wireless, Helio customers could find themselves Virgin customers in due time, whether there’s a merger or not.

Photo Credit: Sue Marek

It appears that the deal is crawling along because Virgin wants Helio to either declare bankruptcy (which would likely help Virgin out with Helio’s debt), or for it to liquidate. SK Telecom, which sank $270 million into Helio less than a year ago, is probably a bit hesitant about this.

Again, all signs point to something, anything, getting done. It might take a few more days or weeks. But in the end, it looks like Helio’s days have come to a close.

2 Responses

  1. Melissa E. Says

    It’s official:

    Posted on June 27th, 2008 at 5:08 pm
  2. PrepaidWirelessGuy Says

    That’s really very interesting. I would have thought that they wouldn’t have shut down the stores so quickly, so as not to alienate Helio customers. Of course that is only if they view thos customers as valuable, which I assume they do, unless of course Virgin is simply after the handsets and platform/application assets. That said, sometimes these things are just about saving cash. Looking forward to seeing what happens.

    Posted on June 30th, 2008 at 11:09 am

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