Tampa, Fla.-based Laser Spine Institute CEO Jake Brace said the company shut its doors after failing to locate an investor March 1, the Tampa Bay Business Journal reports.
Here, Mr. Brace elaborates on the events leading up to the shutdown:
Feb. 22: In a statement, Mr. Brace said LSI's "banks precipitously and surprisingly made the decision to freeze the company's accounts and strip the cash out of these accounts. When this happened, we lost our operating flexibility."
Feb. 25: Management was able to reach "a standstill agreement with the banks in which they we were allowed to fund previously accrued payroll and make limited other critical payments." The banks gave the company until March 1 to find an investor.
March 1: LSI was unable to find an investor and was forced to cease operations and liquidate the collateral for the banks' benefit. That's when the layoffs began and 354 employees were laid off.
LSI has said nearly 600 Tampa area employees would be affected by the end of March.
"Despite last Friday's sudden closure, forced by the precipitous freezing of LSI accounts, a small group of LSI staff continues to work strenuously on assuring that our patients maintain continuity of care. It is LSI's plan that by the end of the week, we will have reached all 1,500 of patients and their new care plans will be in process," Mr. Brace's statement said.
March 4: LSI filed a Worker Adjustment and Retraining Notification Act notice to the state. Class-action lawsuits were also filed against the company by former employees.
Laser Spine claimed it was working to reduce its operating costs. It shut down three surgical centers in the past six months but ultimately couldn't recoup costs.