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Merchant cash advances push InScope into Ch. 11 bankruptcy

InScope International Inc. recently filed for Chapter 11 bankruptcy protection after the company and its subsidiaries could not pay back millions of dollars in high-interest loans.

The Reston technology contractor, which was founded in 2002 and at one point had 250 employees and brought in more than $40 million in revenue, listed $500,000 to $1 million in assets and between $1 million and $10 million in liabilities, according to the Jan. 23 bankruptcy filing. The company’s 20 largest creditors include Leesburg computer service company Clear Focus Technology and McLean marketing firm Octagon Consulting.

InScope and its legal counsel, Kristen Burgers of Hirschler Fleischer in Tysons, did not return multiple requests for comment.

In a filing accompanying the Chapter 11 petition, CEO Michael Bruce details a period of rapid growth and expansion into new markets that began about eight years ago. In 2011, InScope sold its cloud services division for $10 million to launch InScope Energy,…

Read the full story from the Washington Business Journal.