An Important Message From Bluum CEO Erez Pikar
Dear Educator,
On Monday, May 9, 2022, StayMobile, our warranty vendor, filed Chapter 7 bankruptcy.
This leaves numerous customers with the urgent problem of not having access to devices sent to StayMobile for repair that have not yet been returned, and the longer-term problem of the remaining warranty period for millions of devices for which StayMobile is responsible.
This situation presents Bluum with a range of difficult options for how to handle this substantial liability. Every conversation we had over the past few days focused on what we need to do to protect our customers and ensure that devices are recovered from StayMobile and continue to be repaired as swiftly as possible.
As you hopefully expect, all of us at Bluum are fully committed to recovering the outstanding devices on your behalf and supporting the remaining warranty period for any device you purchased the warranty for through Bluum.
Our operations team is working around the clock to gear up for the massive task of tracking, recovering, shipping, and repairing hundreds of thousands of devices, and I expect to ramp up in the coming days and weeks so that we can start providing you with the service you expect. Such work also includes retaining counsel in the StayMobile bankruptcy to protect our customer's rights and recover on damages claims from StayMobile or other third parties, if possible.
In the coming days, as we finalize the process, we will email further instructions on how to submit and track future claims.
There are many questions that will hopefully be answered in the coming weeks, starting with how to get access to units in StayMobile’s possession and what should the warranty process look like moving forward. Some of the answers will require engagement with the court appointed trustee and might depend on the business realities we will discover once we engage with the trustee.
For Bluum to be able to represent you with the trustee and in any future dealings with StayMobile ownership and other related parties, we are asking all our customers to download and sign the assignment and limited power of attorney (“Assignment”), designating Bluum as your representative. This Assignment gives Bluum standing to deal on your behalf with the trustee, but also take on any future fights that might be required to recover any assets or funds that could help mitigate our cost of dealing with the remaining warranties.
We appreciate that you might wish to have your counsel review the Assignment, and we are standing by to answer any questions, but hope that these Assignments can be executed and returned quickly so we can get to work to recover your devices. Please note that the Assignments must be notarized by you for the limited power of attorney to be effective. If you need assistance in procuring a notary, we would be happy to arrange a remote notary on your behalf. Once completed and notarized, please reply to this email and attach notarized assignment.
This is an unfortunate situation, and we empathize completely with how upsetting this news must be. But we hope that our message comes across loud and clear – we will not leave any customer behind and are prepared to move mountains to guarantee that every device is returned as quickly as possible for your students to use.
We request your patience and support in the coming weeks as we work our way through this very complicated and difficult situation. You have our commitment to be prompt and communicative throughout this ordeal. If you have questions, please send them to warranty@bluum.com.
Sincerely,
