Simply Mac Bankruptcy: Who to Call, What Happened and Why

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On June 9, Apple-authorized retail and services provider Simply Mac abruptly shut down, citing difficulties due to the COVID-19 pandemic. Here’s what happened, what’s next, and how service customers affected by the sudden shutdown can get help.

Based in Salt Lake City, Simply Mac was founded in 2006. It offered consumer Apple device repairs and sold accessories like cases, cables, and chargers.

Gamestop acquired the company in 2013 to bring Simply Mac to regions where there were no official Premier Partner Apple Stores. Finally, Gamestop sold Simply Mac in 2019 and Cool Holdings, Inc. acquired it in September 2019.

Many Simply Mac stores have been closed during the pandemic, although Cool Holdings announced it would reopen stores in Oregon and Florida in 2020. That wasn’t enough to keep the company afloat, and in 2022 Cool Holdings announced the closure of all Simply Mac stores.

Court records show the trial began on June 28. Creditors are added to the case including CB&L & Associates Management, Gamestop, Sunrise Mills Limited Partnership and others. Creditors can start filing claims.

The liquidator is George B. Hofmann of Salt Lake City, Utah. Trustees in a Chapter 7 filing perform duties such as confiscating and selling the debtor’s property, distributing proceeds to creditors, and other legal roles.

Simply Mac Saga

Seen in a letter to staff by AppleInsider In June 2022, Cool Holdings CEO Rein Voigt said the company was caught off guard by the onset of the pandemic in December 2019. As a result, it has filed for Chapter 7 bankruptcy and is being wound up.

Voigt also wrote in a statement that the company was helped with $5.1 million in PPP loans from the US government, but no new funds were available after that.

However, the pandemic wasn’t the only thing affecting Simply Mac. It has faced controversy in the past, and some argue that this contributed to its downfall.

In one case, store manager Thomas Lotz filed a lawsuit [PDF] v. Simply Mac in 2017, saying the company committed payroll fraud by classifying store managers as exempt from federal overtime laws and failing to pay overtime.

Additionally some AppleInsider Readers claim that Simply Mac has not shut down due to the COVID-19 pandemic. Rather, so the claim, it was because of wage fraud, including sexual harassment. These readers say they were employed by Simply Mac, or knew someone who was.

Customer Compensation

The company can’t pay its employees due to its bankruptcy, but Voigt said they can get a notice from a court and make claims.

Simply Mac notified employees of their termination and asked them to drop off their keys at the retail stores. However, store managers were not told how to return devices to customers, only that they had to lock up and leave the store.

Simply Mac customers are frustrated that stores are closed. Stores have been closed in Idaho and everywhere the chain operates, although several appliances have been repaired.

Simply Mac Store in Oregon.  Photo credit: localdatabase.com

Simply Mac Store in Oregon. Photo credit: localdatabase.com

In Waco, Texas, a customer called the local police department, with officials saying the situation could lead to a property theft. The woman, Sharlene Reyes, was finally able to get her laptop and Simply Mac refunded the diagnostic fee.

In Tennessee, Simply Mac shopper Anna Teeples left notes on the storefront. Her MacBook Pro was in the shop for repairs and was her only way of running her business. Other customers of the store did the same.

Even landlords of Simply Mac properties have been left hanging. One mentioned that the court case barred him from entering the store or showing it to future tenants.

There’s some hope for Simply Mac customers who have devices stuck in the company’s retail stores. Sent in an email to AppleInsideran Apple spokesman said the company has notified people whose devices got stuck in the Simply Mac repair process.

“The customer has very likely heard of Apple,” the company told us on July 5. “If not, he should call 1-800-MY-APPLE and tell the team member he’s calling about SimplyMac. “

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