Little more than a year after debuting as a flashy newcomer on the then-hot Internet consulting scene, MarchFirst Inc. filed for bankruptcy Thursday. Terms weren't disclosed. Calls Thursday to President Steve Pollema and to a spokeswoman were not returned. They tried to force it together and it spiraled down from there. The bank was not listed among creditors named in Thursday's filing.
Many former employees say they are owed money, as well.
Shareholders stand last in line for payouts after creditors. The fund was perceived as getting a bargain when it acquired a 32 percent stake. But the death of dot-com clients, combined with the economy's downturn, crippled demand for digital consultants. Sources say the two firms never managed to integrate their financial accounting systems, typically a first step after a large merger. Francisco considered pouring hundreds of millions of additional dollars into MarchFirst before pulling back when it failed to bring other investors aboard, according to a source familiar with the matter MarchFirst is represented in the bankruptcy by Katten Muchin Zavis.