Diablo Management Group

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The Diablo Management Group (DMG) is company based in San Ramon, California that provides management, advice and services to companies with financial troubles. Management services include bankruptcy management, closure management, interim management and crisis management.[1]

DMG is hired by faltering companies to terminate employees, execute and enforce lay offs, terminate customer agreements, and close offices. In October 2008, when Digital Railroad was unsure if it could continue to afford its servers, they hired DMG to terminate their business operations. Digital Railroad executives were therefore unreachable and all inquiries were forwarded to DMG.[2]

DMG also profits arranging for the sale of a failing business and by buying parts of companies as they go into bankruptcy, and later re-issuing or re-selling them.[3] DMG positions first in an advisory role, as in the case of MobileStar, and then uses that position to take over the company when it cannot be turned around.[4] This was done by replacing the MobileStar CEO with a DMG employee, in this case DMG CEO Richard Couch, as the interim CEO.[5] Another successful strategy of DMG is, as was the case with Pets.com, to have all the officers and directors of a company resign and have Couch retained to act as sole director of the company, act as CEO of the company's holdings, and handle all remaining affairs.[6]

In 2000, when Riffage.com went under, DMG took over its assets, which included ownership and management of the Great American Music Hall.[7]

DMG was founded in 1986.[1]

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