WYNIT, the electronics distributor, has filed for Chapter 11 bankruptcy protection.
The filing came to light last week when Fitbit indicated it was taking a charge related to its bankruptcy when it reported its third quarter earnings. WYNIT filed on September 8, according to documents on file in U.S. Bankruptcy Court in Minnesota.
The filing blamed the bankruptcy on lower-than-expected sales from its largest supplier. The supplier wasn’t named but the largest unsecured claim against the company is held by Fitbit.
According to the Upstate Business Journal in Greenville, NC, negotiations to obtain additional product from Fitbit and attempts to secure additional financing failed. The company also said it faced complications due to the relocation of its headquarters in 2015 from Syracuse, NY to Greenville.
WYNIT intends to maintain operations in Eden Prairie, MN., and sell its software division. It’s also looking to liquidate about $90 million of inventory stored in warehouses while working to collect collect about $108 million in outstanding accounts receivables.
