Vyaire Enters into Bankruptcy: Pandemic Success Turns to Financial Struggle

The Chicago, IL-based company is the latest firm that blossomed during the early days of the pandemic to either fold or file for bankruptcy.

Omar Ford

June 12, 2024

1 Min Read
Image Credit: AndreyPopov via iStock/Getty Images

At a Glance

  • The company cites below-expectation performance and debt refinancing challenges as key factors in its decision.
  • This development underscores a growing industry trend as other pandemic-driven success stories face financial hardships.

Vyaire Medical, a maker of ventilators, filed for Chapter 11 bankruptcy protection after demand waned for its products. The company said its total assets were between $100 million and $500 million with total liabilities between $500 million and $1 billion, according to the bankruptcy filing.

The Chicago, IL-based company said the decision follows below-plan performance in the first half of the financial year, which frustrated efforts to refinance company debt.

“Chapter 11 protection will offer us the breathing room we need to explore selling our businesses to capable, well-financed buyers that have the financial ability and stability to execute on the Respiratory Diagnostics (RDx) and Ventilation business strategies delivering our vital products to customers and patients in need,” said John Bibb, Group CEO, Vyaire.

 The company said in the coming months it will focus on the following:

  • Supporting the continuity of services to customers and honoring commitments to partners and employees, while complying with the terms of the US Bankruptcy Code.

  • Selling Vyaire business units to stable, well-capitalized buyers that will support the growth and development of our RDx and Ventilation portfolios.

A trend that is emerging in the industry is the crash of many companies that exploded during the early days of the pandemic.

Related:How Click Therapeutics Is Aligning with Medtech’s Latest Trend

Late last month, Cue Health, a developer of COVID-19 detection tests, shutdown operations. The San Diego, CA-based company was founded in 2010, but saw amazing growth in 2021. At one point, Cue Health had a valuation approaching $3 billion.

Better Therapeutics, a prescription digital therapeutics firm, announced the termination of its employees and a decision to explore strategic alternatives.

The San Francisco, CA-based company developed digital diabetes apps. It was recently revealed that Click Therapeutics acquired Better Therapeutics’s assets.

About the Author(s)

Omar Ford

Omar Ford is MD+DI's Editor-in-Chief. You can reach him at [email protected].

 

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