Company Profile

ATX INC. Review and History

Information on the ATX INC. discontinued direct selling program.

ATX INC. Overview

Address 50 MONUMENT ROAD
BALA CYNWYD Pennsylvania 19004
Phone 800-220-ATX2
Fax 303-791-3791

ATX INC. no longer appears to be active as a direct sales company.

Original Npros business profile for ATX INC., preserved below for archival purposes:

ATX Telecommunications Services was a Pennsylvania telecommunications company founded in 1985 and based in the Philadelphia area, later operating from 50 Monument Road in Bala Cynwyd. The business was built by principals including Michael Karp, Debra Buruchian and Thomas Gravina. Buruchian joined ATX in 1986 and became a partner and co-CEO, while Gravina joined in 1987 and also became a partner and co-CEO. ATX grew into a substantial competitive telecommunications provider serving primarily business customers throughout the Mid-Atlantic region.

ATX sold local and long-distance telephone service, toll-free service, calling cards, private-line service, Internet access, web hosting and development, frame relay, conference calling, fax broadcasting, cellular and paging services, network integration and other business communications products. Regulatory filings describe ATX as a telecommunications carrier and reseller rather than a consumer-product direct seller. By the early 2000s, the company was also providing higher-capacity voice and data services, managed networking, Internet security and other communications technology to small and midsize businesses.

ATX used both conventional employees and independent telecommunications agents and resellers to sell its services. Channel partners could earn recurring commissions from customer accounts; in 2006, for example, ATX's managed-security agent program paid approximately 12% to 20% commissions, plus promotional bonuses on certain services. This was a telecom agent/reseller model rather than a conventional MLM compensation plan. There is no documented binary, matrix, unilevel or generation-based structure in which representatives were paid for recruiting additional representatives.

ATX underwent a major corporate transformation in September 2000, when publicly traded CoreComm acquired ATX Telecommunications Services and Internet provider Voyager.net. The combined company offered voice, data and Internet services across 13 states and had a reported pro forma market capitalization of approximately $4.1 billion at the time of the transaction. ATX's name subsequently became the primary identity for much of the combined telecommunications operation. Thomas Gravina eventually became president and CEO of ATX Communications.

Financial difficulties following the telecommunications-market collapse of the early 2000s led ATX Communications and 31 subsidiaries to file Chapter 11 bankruptcy on January 15, 2004 in the U.S. Bankruptcy Court for the Southern District of New York. Another subsidiary filed in March, bringing the jointly administered cases to 33 debtors. Under the reorganization, existing ATX equity was cancelled and Leucadia National Corporation received approximately 95% of the reorganized company. Gravina retired as president and CEO as part of the reorganization and remained temporarily as non-executive chairman.

ATX continued operating after bankruptcy, but its period as an independent telecommunications company ended on September 29, 2006, when Broadview Networks Holdings acquired ATX Communications and all of its outstanding shares.

ATX INC. Owners, Executives and Executive Consultants

Michael Karp, Principal and Chief Executive Officer
Thomas J. Gravina, Partner and Co-Chief Executive Officer; later President and Chief Executive Officer
Debra Buruchian, Partner and Co-Chief Executive Officer; later Co-President and Co-Chief Operating Officer
Timothy Allen, Senior Vice President of Sales

ATX INC. News

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