Since it ceased operations Feb. 1, the only official contact that fellow list firms have received regarding list brokerage and management firm The Listworks Corp. was a letter sent by Wells Fargo Bank. Listworks itself has made no public statements.
An industry professional shared the contents of the letter with DM News. Dated Feb. 9, it came from Wells Fargo Loan Adjustment Group and was addressed to the attention of accounts payable regarding the assignment of payments due to Listworks. It instructed companies that owe money to Listworks to submit it to Wells Fargo instead.
It went on to say, “All amounts invoiced to you by Listworks are Wells Fargo's collateral and are due to Wells Fargo in full. You may not withhold any amount for payment to another party even if Listworks is obligated to make payment to such other party. If you make payment to any other person or in any other manner other than as set forth in this letter your payment obligation will not be discharged and you will remain liable to Wells Fargo for the amount paid.”
The letter made no mention of money owed by Listworks to other list firms on behalf of list owners.
Calls to a telephone number provided on the letter went unreturned yesterday, but another source said Wells Fargo was one of the banks used by Listworks.
Though it was rumored that Listworks would file for Chapter 7 bankruptcy protection, DM News was unable to obtain further information of such a filing. The company's Web site stopped working over the weekend, and calls to its main telephone number still go into voicemail and are unreturned. E-mails also remain unanswered.
What is known is that several former Listworks clients have chosen new list firms and that several employees have found new jobs in the industry. Even before Listworks closed, two employees, Lisa Greene and Frank Quaranta, left to open Specialized Fundraising Services Inc., Spartanburg, SC, on Jan. 24 and took Greene's brokerage clients with them.
Though Listworks' managed list properties were handled in its Hawthorne, NY, office, SFS has since assumed list management of most of Listworks' nonprofit clients' files.
Kristen Bremner covers list news, insert media, privacy and fundraising for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters