HealthSpot files for Chapter 7 bankruptcy

Technological advances have provided interesting solutions for Texas residents in need of quick answers to minor health care concerns. Kiosks that provide for interaction in real time with a doctor have been developed and placed in both retail and work locations to fill this need, but one of the major companies in this industry has filed for Chapter 7 bankruptcy. HealthSpot reportedly shut down approximately two weeks prior to the filing.

The company’s lawyer reports that while the business had some excellent results in aspects of its activity, the lack of cash flow prevented the organization from continuing forward. The revenue for the last three years was a little over $1 million, and more than half of this was earned in 2015. However, the company’s liabilities total more than $23 million, including convertible debt held by Xerox and Cox Communications.

Raising investment resources is not uncommon in the health kiosk industry. Another company in this industry, higi, recently secured approximately $40 million in additional investments from existing partners. This followed higi’s merging with a separate kiosk business, Stayhealthy. Meanwhile, the Healthspot bankruptcy comes after an effort to partner with Samsung to incorporate blood testing solutions into its kiosks.

Chapter 7 bankruptcy is a solution that involves the liquidation of assets. For a company, this option may be most appropriate if there is no apparent way to resolve financial difficulties and return to healthy operations. If a company wants to attempt to continue to operate, a restructuring of debt might be achieved through Chapter 11.

Small business owners might want to keep their companies going in spite of a period of financial challenges. However, the financial situation could be such that continuing operations are not viable. Discussing the options with a lawyer may provide the direction needed to determine procedures involved in filing for bankruptcy.

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If you’re facing bankruptcy in Texas, we’re here to help. Contact the experienced bankruptcy lawyers at Pelley Law Office, L.L.P., today to schedule a free consultation.

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