This was posted at whtDear HostRail Customers,
I have personally tried all possibilities in order to (a) provide customers with 24 hours or even less to take backups of data or (b) sell the company.
Unfortunately i was unable to reach into an agreement with LimeStoneNetworks which was my main concentration as i was aiming to provide customers with time to get backups of their site. Even the solution of me putting a personal guarantee on the debt doesn't seem like a solution and doesn't look like this will get accepted although this hasn't been rejected.
I have also been unable to reach into an agreement to sell the company to anyone.
HostRail always provided a cheap service, a service that is not really sustainable in the long run. The problems that hit us during April caused us to make a large loss that is affecting us still in many ways.
To conclude as of 28th June 2011 8pm EEST HostRail and C & C Advanced Online Services Ltd is officially closed.
I would like to thank everyone that supported us and would like to apologize for the large inconvenience this has caused you.
Due to my own personal problems i will be unavailable here in Facebook for some days now.
Looks like they flew the coop! And left alot of people hanging.
When you're offering VPSs for $1 or pretty darn close to it...that barely covers the PayPal/Credit Card fees. There is no way it is sustainable. Too bad the customers didn't realize that.
I heard the same thing about the IPs. Even so, the servers had to be so oversold, it's not even funny. I was always tempted to try one of them out just for fun, but never got around to it. I read some of the horror stories.
Well, sucks to be the poor bastards that were hosted there.
I'm not surprised at all.
Same here. But you must feel bad for the users who had no clue and could think you can get a VPS for that cheap and think it will run for ever. it take me back to the 250free.com issues they had. I just hope they had backups are where able to get them before servers gone poop...
It had nothing to do with the cheap VPS - they simply had no idea how to run a company.
Actually, it had to do with both. You cannot offer VPS's with the resources they were offering, at those prices, without severely overselling the servers. I haven't looked at their prices in some time, but I would assume the numbers don't add up to even pay for the cost of the servers.
I am Constantinos Coudounaris, Chief Executive Officer of HostRail. I have some unfortunate news to announce tonight.
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On Friday 24th June 2011 our Providers have informed us of a 60% upcoming price increase that is taking effect from the 28th June 2011, this was an extremely short notice for us and completely unexpected - as small of a short notice as it was we had to take action immediately in order to be able to continue providing service to our clients, i have had meetings with every single HostRail Staff Member as we needed to take a decision and we have taken our decision which is provided below.
Due to the current economic crisis that is affecting all companies in the planet we are unable to deal with this 60% price increase using our currently approved budget for 2011 and we are unable to approve a further budget for 2011 at the current stage, this means that we will be forced to pass on this 60% price increase to all clients as of tomorrow evening. Tomorrow evening we will be sending Invoices to every single customer with the 60% price increase, unfortunately this price increase will have to be paid by Tuesday morning so we can cover the 60% price increase our providers are asking.
We have tried all possible alternatives and solutions however the only solution is to pass this price increase in full to our customers, this is not something i want to do, this is not something i like to do, this is something that i have fought for 2 days now to try to avoid at all costs however its not on my hands anymore so i am unable to do something more.
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IMPORTANT NOTE
For the customers that will not be able to pay this 60% price increase i recommend that you proceed to the immediate cancellation of your services as we will be suspending all Services on Tuesday morning that have not paid this price increase. I should clear that this price increase willl be applied to all of our customers, even to customers that have ordered their service today.
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I apologize in advance for any inconvenience this may cause however i am unable to do anything and the people that know me personally know that i have given a large battle to try to cover up this price increase myself but this was impossible.
Best Regards,
Constantinos Coudounaris
Chief Executive Officer
HostRail
Hello,
We are Hostrail's, Switzerland dedicated servers provider. We are writing this post for clarify the situation.
We do not raise any price. Price are all the same as we started. Hostrail has always billing issues. SERVERS SHUT DOWN BECAUSE OF BILLING ISSUES.
There is no cooperation in this situation. They have overdue invoices. We gave them 10 days but they do not respond it. We saw them, they were login into clients area but they did not give any response.
When we shut down their servers, they blame us and they said they did not get any invoice, ticket or reminder mails. So we gave them the mail logs.
On Saturday they want 2 days for payments, they sign document about it and we power on their servers again. But they did not pay it again.
This is the real story about Hostrail and Switzerland. We have all documents about it.
SO, there is no negotiation about the prices and others. All of the situation is about their unprofessional behaviours, lack of dicipline and billing issues.
If there is any questions about it, please sent an email to hostrail@hosthink.net. Our staff members will try to help you ASAP.
Regards,
Seref Cankaya
CEO
Hosthink Internet Services
I've always been curious. How does one make money out of a business like this?Yep, healthy combination of the two. Just a terrible business. He made a crapload of money though, I'm sure.