What's Missing From This Web Site?

On Tuesday, August 7, Massachusetts managed hosting provider USDataCenters filed for Chapter 11 bankruptcy. But you'd never know it from the company's web site. Three days later (August 10) the company's web site touts a March press release about the company receiving $10 million in funding. But there's nothing about its bankruptcy filing.

USDataCenters is hardly alone. COLO.COM's web site didn't include a reference to its May bankruptcy filing for at least a week after its May 8 filing. Layer One Inc.'s web site still includes no reference to its July 6 Chapter 11 filing.

Even in the current environment, no company is proud of filing for bankruptcy. Issuing a press release that details business difficulties is never a top priority. But at the same time, a company's bankruptcy is important information for potential customers and business partners - not to mention current customers. It's a pretty big detail to leave out of the conversation.

Should companies disclose Chapter 11 filings on their public web sites? Or is it okay to wait until a later time to disclose that fact with prospects? Let's hear from you. Add your thoughts in the comment form below or click the "comments" link.