ION Worldwide Inc., a maker of wearable digital recorders that competes with industry leader GoPro Inc., has filed for bankruptcy after seeing its revenue drop significantly last year.
The New Jersey company has already reached a restructuring support agreement with one of its lenders, which would cut more than $15 million in debt from its balance sheet and allow iON to stay in business.
ION Chief Financial Officer Chris Oatway said in court papers filed last week that the cash-starved company has been mired with problems, including disputes with one of its licensed brands and an intellectual-property lawsuit with GoPro
ION makes a line of wearable cameras in a variety of sizes, home-security products and dash cams, among other products, under the iON and Contour brands.
ION saw its revenue drop to $12.4 million in 2015 from more than $25 million in 2014, Mr. Oatway said in court papers. The company sought to cut costs, and it laid off employees, but that wasn’t enough to stave off bankruptcy.
Litigation involving the company has also cut into iON’s bottom line. The company filed a patent lawsuit against GoPro late last year. And though the lawsuit is “likely years from producing any result,” the company will be incurring high legal costs, Mr. Oatway said in court papers.
An extended version of this article is available at WSJ.com
View more information: https://www.marketwatch.com/story/wearable-camera-maker-ion-worldwide-files-for-bankruptcy-2016-06-28-91031632