Concise Network Solutions Inc. filed for Chapter 11 bankruptcy protection on Jan. 31 after struggling to keep the company afloat while carrying millions of dollars in debt for three years.
David Johnson, CEO of the District-based IT and telecommunications service provider with private and public sector clients, said the company incurred the debt after being awarded a contract with a large commercial client that Concise claims changed the scope and drove up the cost of a project the company could not afford to execute.
“We were screwed by a primary contractor and it cost us millions,” said Johnson, adding that the recent 35-day government shutdown was the final straw. “To lose a whole month of revenue from one contract, that’s what caused us to finally file.”
The filings list $51,715 in assets and $3,556,125 in liabilities, with the IRS being the largest creditor owed at $351,286.
Johnson said the company filed a lawsuit against the commercial client, which he would not identify,…Read the full story from the Washington Business Journal.