An important healthcare company now files an unexpected bankruptcy after declaring liabilities of $1 billion to $10 billion.
Invitae, a medical genetic testing company, has now filed for Chapter 11 bankruptcy and intends to continue the case without disrupting operations using cash on hand and while seeking to sell its business.
The San Francisco-based company is seeking approval from the U.S. Bankruptcy Court for the District of New Jersey to use its cash on hand to fund the case.
In its bankruptcy petition, the company listed assets of $500 million to $1 billion, but liabilities of $1 billion to $10 billion.
“We have been working diligently over the past eighteen months to improve our cash position by realigning our portfolio and focusing on our most impactful business lines,” Ken Knight, president and chief executive officer of Invitae, said in a statement.
“These strategic initiatives have accelerated our path to positive cash flow in order to realize our potential as an industry-leading genetics platform.
However, we still need to address the company’s debt position through these Chapter 11 proceedings.
I want to thank our incredibly talented and hard-working employees for their continued focus on our patients and customers.”
Invitae went public in early 2015, initially listing on the NASDAQ for $17.80 per share.
In 2020, the stock reached a high of $56.60 per share, the highest it’s seen since being listed.
In 2021, Invitae announced it signed a definitive agreement to acquire Ciitizen, a startup that helps users access and organize their health records, for about $325 million.
The terms of the deal included around $125 million in cash and approximately 7,070,000 shares of Invitae common stock.
Invitae said at the time that it would also issue about $226 million in restricted stock units to new employees who join the company as part of the acquisition.
The company had two rounds of layoffs between 2022 and 2023 in order to cut costs and, last year, divested Ciitizen, which it said would save an estimated $90 to $100 million per year.
The company’s stock price has plummeted and closed at $0.019 per share as of today.
Last week, the New York Stock Exchange announced it was beginning the process of delisting the company’s shares due to the stock being at “abnormally low price levels.”
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Also Read: This Massive Mall Retailer Is Now Closing In California
Other Bankruptcy News Today
Another popular restaurant now declares an unexpected bankruptcy after closing several chains in Chicago, Arizona, and California.
Etta Collective, a small chain that operates multiple concepts in Chicago, Arizona and Los Angeles has closed several restaurants and has filed for Chapter 11 bankruptcy, reports TheStreet.
The chain closed its namesake restaurant in Los Angeles last year and abruptly shut down a Chicago-area restaurant, Sophie’s, earlier this year.
Now, after defaulting on a $2.5 million loan, the company’s owner, restaurateur David Pisor, has officially made the bankruptcy filing.
Pisor’s Etta collective runs a number of different concepts including its namesake restaurants, a bakery cafe, Alston House, a high-end steakhouse, and Kari, an upscale sushi concept.
The chain also has Marilyn’s, a planned concept that has not opened.
Pisor has said that the bankruptcy filing was made in order to help the company continue to operate.
“We have made a proactive decision to commence this strategic reorganization process with the cooperation of our lender, who has agreed to work with us so that we can come out of this process even stronger than before,” Restaurant Business reported.
The bankruptcy process could include a sale of the brand as the investor John Leahy has emerged as a bidder for the company’s assets.
“Our aim is to best position the Etta brand for future success,” Pisor said in a statement.
“By filing for protection under Chapter 11, we will be able to restructure our financial position while continuing our daily operations and keeping our locations open.
As has already happened in our Scottsdale location, we predict that we will emerge stronger both operationally and financially.”
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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