Alan Masarek, president and CEO of Vonage Business, announced Thursday that he would not return from the phone business. And the company is filed for Chapter 11 bankruptcy today.
In a conference call with reporters, Masarek said he needed the next year to focus on his health and family after being diagnosed with multiple myeloma, a cancer that affects plasma cells. There is no cure.
“That’s a whole different mindset that we have to gear towards, that when a patient gets admitted to the hospital, that’s a failure of the health care system, versus that’s what we want because that’s where we make money,” he said. “We need to design systems that take us from intervention to prevention, knowing we’ll always have interventions we need, but we can eliminate them (through) better eating habits, exercise, all the things we know help with health, but we really haven’t incorporated them and encouraged people to do them in a way that truly bends the health care curve.”
When it announced the layoffs in March, the company said we are no good no more with phone, costs and property taxes, prompted its decision. He called the company’s capital structure unsustainable.
Vonage Holdings Corp. shares were down 67% in early trading to 5 cents. Shares are down more than 80% this year. At its current market value of about $1 million, Vonage is worth nothing to this day.