AirXpanders (ASX:AXP) abruptly pulled the plug yesterday, saying it plans to lay off nearly all its employees and file for Chapter 7 bankruptcy by the end of the month.
The Palo Alto, Calif.–based company makes the AeroForm device for post-mastectomy breast reconstruction. It’s designed to expand and stretch the skin and underlying muscle prior to a permanent breast implant using small amounts of CO2 up to three times a day. Earlier this week AirXpanders won 510(k) clearance from the FDA for a smooth-shell version of AeroForm.
In May the company tapped Cowen to explore financial and strategic alternatives.
Yesterday AirXpanders said it would immediately cut its workforce by 77% to eight employees, “with further reductions planned for the near future.”
“In addition, the company is notifying customers that it is ceasing sale of all products immediately, and will not be providing customer service or sales support after Thursday, July 18, 2019,” AirXpanders said.
A Chapter 7 bankruptcy filing is expected no later than July 26, the company said.
