UPDATED – It appears the troubled SNT Media has closed its doors.
Doug Jessop, who was named acting interim president and chief reorganizing officer of the Wichita-based data company on Thursday, sent a email to remaining employees to say it is his “difficult task to tell you that the company has closed its doors effective immediately. Do not come to work today, Monday, February 5, 2018.”
Much has changed since Thursday when three board members, including acting Social Networking Technology president Gary Oborny, resigned.
According to Jessop’s note, there has been a scramble for funding to keep the company going.
“But, in the end, the money was not raised given the extremely short time period,” Jessop wrote. “Game Over.”
Jessop didn’t return a call for comment.
Oborny says before resigning on Thursday, he made payroll to ensure all remaining employees were paid.
“My goal was to give them an opportunity to reorganize,” he says.
“Just to keep them alive basically” was part of a bigger goal, Oborny says.
“My goal here really was to preserve a high-tech opportunity for the entrepreneurial community in Wichita.”
For a time, SNT was one of the most-talked-about new companies in Wichita. In December, things began to unravel publicly.
As Have You Heard? reported in December, stockholders Kevin Wagner and SP SNT Holdings LLC filed a Dec. 15 lawsuit in U.S. District Court against the company and several former executives that alleges that the company and those former executives didn’t follow rules regarding the sale of stock and also misrepresented several aspects of the business.
The suit says that SNT Media and the executives misrepresented its cash flow and technology among other things and are asking for the return of their $1 million investment plus interest and legal fees.
In early January, Have You Heard? reported that the company faces three other lawsuits related to breach of contract and nonpayment allegations and could be on the verge of filing Chapter 11 bankruptcy.
At the time, there were 36 employees remaining at the company, which was down due to a series of layoffs from a high of more than 100.
Look for updates on the story as they become available.