MicroAge Puts Teleservices Subsidiary Up for Bids

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MicroAge Inc., Tempe, AZ, will sell its teleservices subsidiary at an upcoming auction as part of its reorganization under Chapter 11 bankruptcy proceedings and has lined up one potential buyer.

The company will take bids on MicroAge Teleservices LLC at an auction that will take place Oct. 25 at U.S. District Court in Phoenix. MicroAge Teleservices employs about 1,000 associates and has call centers in Tempe, AZ, Las Vegas and Santa Maria, CA.

A limited liability corporation formed by a group of prospective buyers, including United Parcel Service, private investor Humberto Lopez and John Andrews, president of MicroAge Teleservices, has agreed to purchase the subsidiary unless better bids are produced by the auction. Details of the proposed purchase were not disclosed.

No employee layoffs are planned, said Michelle Gorel, spokeswoman at MicroAge Inc. She said the teleservices subsidiary was not closely associated with the company's core competencies and operated for the most part as an independent unit.

"We anticipate operations will continue as they are today," Gorel said. "We will continue to serve clients as we are today."

MicroAge Inc. filed for bankruptcy in April and has since shrunk from 4,500 employees to about 3,000. MicroAge Teleservices has not lost employees and the sale will allow it to continue operating independently and to acquire the capital it needs to grow, Gorel said.

MicroAge Teleservices provides outsourced call center operations for numerous clients, including UPS. About 80 percent of the company's operations consist of customer support and inbound telemarketing with the remainder of the business dedicated to outbound telemarketing.

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