The economy has been tough on everyone over the past couple years, but it now seems to have claimed a victim in the hosting industry. From everything I can tell, on September 27 Caro.net (Carolina Internet, Ltd), a Charlotte, North Carolina based Colocation provider, filed for Chapter 11 bankruptcy protection in the United States Federal Bankruptcy Court, Western District of North Carolina (Case 11-32461). This was discovered in a suit to protect their assets from TW Telecom Holdings, Inc. of which you can see the full documentation here. This issue appears to have stemmed from a $3.2 million judgement against them from tw telecom (TW Telecom Holdings, Inc).
Now, I do not want to encourage Caro.net customers to make emotional decisions and immediately jump ship, as companies often come out of Chapter 11 better and stronger. While this is a shock to the industry, I want to assure our own customers that even with this economy, we still saw strong revenue growth (20%+ annually) and have continued expanding on strong financial footing.
This is a reminder to everyone that you should always have a "Plan B", a disaster recovery plan, as there is a wide array of factors that could cause instability in your hosting platform. If you need help in developing your own disaster recovery plan, please contact us for free consulting.
To clarify, Caronet Managed Hosting, Inc. is not declaring bankruptcy, but their colocation provider/vendor Carolina Internet LTD, owner of the Caro.net domain (according to WHOIS records) is.