Madison’s Sonic Foundry, a company specializing in information technology, finds itself in financial trouble and has now filed for receivership in a bid to steer clear of going completely under, according to a report from the Wisconsin State Journal.
Dane County Circuit Court documents reveal that the company is drowning in over $12.5 million of debt to its creditors. With assets, cash on hand, and expected incoming cash not enough to cover what it owes or keep the business afloat, Sonic Foundry is in a tight spot.
Receivership is different from filing for bankruptcy. It means a court-appointed third party steps in to take over managing the company’s assets and making decisions, aiming to get the company back on its feet. If that doesn’t work, the company’s assets might be sold off to pay debts.
Sonic Foundry has been around since 1991, initially making waves with its audio technology before shifting gears to video capturing and management technology. The latest court documents show the company has about 3,000 shareholders and around 15 full- and part-time employees.
Back in April 2022, Sonic Foundry boasted a global presence in 65 countries and had 220 employees worldwide.
