Arch Therapeutics files for Chapter 11 bankruptcy protection
Arch Therapeutics Inc. has filed for Chapter 11 bankruptcy protection, citing 'capital market challenges' as a major factor leading up to the filing.
Story Highlights Arch Therapeutics Inc. files for Chapter 11 bankruptcy protection.
Company failed to list on major exchanges despite multiple attempts.
Arch seeks $2 million loan to facilitate asset sale process.
Arch Therapeutics Inc. has filed for Chapter 11 bankruptcy protection, citing 'capital market challenges' as a major factor leading up to the decision.
The Framingham-based biotech is behind an FDA-cleared wound care product called the AC5 Advanced Wound System that is used to manage injuries such as pressure ulcers, venous leg ulcers, diabetic ulcers, and surgical wounds.
Terrence Norchi, co-founder and CEO of Arch, said in an affidavit that the company previously traded on the OTCQB market, but was recently downgraded to the OTC Expert Market because it didn't have adequate capital to be compliant with listing requirements.
In order to reach 'broader capital markets access,' Norchi said Arch tried to list on Nasdaq or the New York Stock Exchange multiple times.
Sign up for the Business Journal's free daily newsletters. Download the free BBJ app for important news alerts on your phone.
'Despite substantial efforts, these attempts were ultimately unsuccessful. During this time, Arch entered into several vintages of convertible notes, which contained covenants requiring the debtors to continue pursuing an uplist. As uplisting remained elusive, the convertible instruments became increasingly challenging to secure, let alone service,' Norchi said.
The chief executive added that these financial challenges 'compounded the difficulty of supporting even a modest commercial presence, despite the strong clinical and regulatory foundation of Arch's lead product, AC5.'
The public markets have not been kind to companies looking to complete initial public offerings in the last few years. Six Massachusetts biotechs held IPOs in 2024. All of their stocks are down from their debut. Only one Massachusetts company has gone public so far in 2025.
Norchi also detailed 'considerable efforts' to secure funding or find a strategic partner, none of which panned out.
Norchi said Arch's financial position deteriorated to the point where it could not meet payroll or other obligations. The company now consists of a single full-time employee who is unpaid and support from a small number of consultants.
Chapter 11 bankruptcy is typically used when companies attempt to reorganize their debts while continuing operations. However, Norchi said in the affidavit that with Arch's lack of sufficient funding, it's looking to sell its assets.
In order to keep working toward that sale, Arch filed a motion to ask the court for permission to accept up to $2 million in a secured term loan facility from Vivex Biologics Inc. to pay necessary expenses.
Don't miss out on Boston-area life science news. Subscribe to the Morning Edition or Afternoon Edition for free.
Largest Life Science Companies in Massachusetts
Mass. employees
Rank Prior Rank Firm/Prior rank (*unranked in 2023)/
1
1
Takeda
2
2
Sanofi
3
3
Moderna Inc. View this list
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Axios
23 minutes ago
- Axios
Exclusive: Zorro clinches $20M Series A for ICHRA health plans
Health benefits provider Zorro raised $20 million in Series A funding led by Entrée Capital, CEO Guy Ezekiel tells Axios exclusively. Why it matters: As employers wrestle with rising health plan costs, individual coverage health reimbursement arrangements (ICHRAs) are gaining steam. Driving the news: Launched in 2020, ICHRAs were enabled by a Trump-era rule letting employers reimburse employees tax-free for individual health insurance instead of offering group plans. After a slow start, rule clarifications and compliance tools made them more accessible to midsized employers. Follow the money: Existing backers Pitango and 10D joined the round, which will be used to scale operations and improve support for employers. The Series A brings Zorro to $31.5 million total raised. The company is not yet profitable. How it works: New York City-based Zorro replaces traditional group plans with defined-contribution models. Employers set a budget; employees use Zorro's AI engine to select personalized plans, and brokers get real-time tools to compare group plans versus ICHRA-based options. When it onboards an employer, Zorro asks them to send their benefits roster from the previous year, asks about quality and budget priorities for the upcoming year, and helps predict what benefits employees might want next. Zorro has "several thousand" lives on the platform, per Ezekiel. Between the lines: Zorro's pitch hinges not just on cost control but on its ability to shift complex decision-making from HR to software — claiming that 75% of users enroll without human help. What they're saying: "We're giving the employer a line of sight to how his upcoming year is going to look," says Ezekiel. Reality check: While ICHRAs are gaining traction, they remain a small fraction of the employer market. Zorro's long-term success depends on widespread broker adoption and employee trust in AI-led benefit decisions. State of play: A February Bailey's report predicted the debut of several new ICHRA startups in 2025. Several others have secured recent funding. In April, Thatch raised $40 million in Series B funding led by Index Ventures and Venteur Health Insurance raised a $20 million Series A led by Informed Ventures and American Family Ventures. Remodel Health last December collected more than $100 million in a round led by Oak HC/FT and Hercules Capital.
New York Post
25 minutes ago
- New York Post
Fast-casual food places conquering Midtown as workers return to office
Fast-casual food spots are fast conquering Midtown to fill long-empty storefronts — buoyed by more office workers returning to their desks five days a week. The boom includes not only familiar names such as Pret a Manger and Sweetgreen, but also brands new to New York. 'Coming soon' signs just went up in the windows of 40 W. 53rd St. for Farmer J, a UK-based, health-focused chain with 11 locations in London and expanding to the U.S. for the first time. Pollo Campero, which its broker, Meridian Retail Leasing president James Famularo, called 'the Chick-fil-A of Guatemala,' was unknown here until it opened at 966 Sixth Ave. and at 714 Lexington Ave. about a year ago. Famularo also brought Springbone Kitchen, a bone broth operation, to 25 E. 51st where he represented the landlord. 3 British health-focused chain Farmer J will open its first store in the U.S. at 714 Lexington Ave Steve Cuozzo Landlords and retail brokers attribute the boom to the return of five-day office workweeks for many employees. 'A lot of this is a function of people returning five days a week, and major companies believe Midtown and the Financial District are viable again,' said Patrick A. Smith, vice chairman of retail brokerage for JLL. Five-day work schedules are crucial to casual food businesses because, Smith explained, 'They mostly have to survive on one meal a day — lunch. They can't do it on only three days a week.' Famularo agreed, saying, 'The big story is that people are back in the offices. This is after years of hearing the city will never be back to five days a week, which was the biggest impediment we found when we showed midtown spaces.' CBRE's Henry Rossignol, who represented Joe & the Juice in its latest lease at 1195 Sixth Ave., also attributed operators' confidence to data they get from delivery services such as Uber Eats and Door Dash, 'which tells them exactly where the demand is at a particular location.' The newest Joe is right across from the next outpost of Naya, the popular Middle Eastern chain that's gobbling up storefronts everywhere. 3 Joe & the Juice at 1195 Sixth Ave. Steve Cuozzo Cushman & Wakefield's Steven Soutenidjk, who represented Carrot Express in its lease at 600 Lexington Ave. two years ago, said the corner location is the Florida-based chain's best performer. He said as a result of the fast-casual spread, 'There's basically no space available for any more between Lexington and Seventh avenues,' Soutenidkj said. Some of the new arrivals are taking over spaces that were dark for years. A bagel operation called Scoop is coming to previously vacant 7 E. 53rd St. Also new to the scene are Yumpling, a Taiwanese spot at 16 E. 52nd St.; British coffee-and-snacks chain WatchHouse, which just signed a lease at the Chrysler Building on the heels of its success at 660 Fifth Ave.; and Bagizza, a pizza-and-bagels hybrid at 424 Madison Ave. 3 Bagel shop Scoop will open at 7 E. 53rd Street. Steve Cuozzo Asking rents vary a lot depending on location. But most brokers said they range in Midtown from $150 to $300 per square foot. After years of struggling with a shrunken retail-space markets, landlords are thrilled that fast-casual is helping take up the slack. 'The tides are finally turning,' Famularo said. 'What was a glut of inventory, now is slowly disappearing every week.'
Yahoo
an hour ago
- Yahoo
Amazon Signs 141,000 Square Foot We Work Lease In Silicon Valley Amid Relentless Expansion And Back To Work Mandate
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Amazon's (NASDAQ:AMZN) office expansion knows no bounds. Fresh from expanding its presence in New York, the tech giant announced it is growing its presence in Silicon Valley by teaming up with WeWork (NYSE:WE) to add 141,000 square feet of office space to accommodate its return-to-office mandate, CoStar News reports. The new offices are located at 4980 Great America Parkway in Santa Clara, California, in a building that Amazon will occupy in its entirety as part of its effort to have its workforce return to a five-day-per-week in-office work schedule. 'We're constantly evaluating our office footprint based on the needs of Amazon's businesses,' an Amazon spokesperson told CoStar News. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can WeWork has been a constant collaborator with Amazon, and the most recent deal follows similar arrangements the two companies have made recently, CosStar reports. At 330 W. 34th St. in New York and at 401 San Antonio Road in Mountain View, California, WeWork signed an office lease before Amazon moved in. 'So if we look at it and just take today's environment with all the uncertainty around tariffs and what's happening, who's prepared to commit to a 10- or a 15-year lease with $50 or $100 million spend?' WeWork CEO, John Santora, said of the arrangement with Amazon and other companies at a recent summit. 'You have to think about it. You have to think whether or not to invest that major capital in a market, at least through this short term. You have to step back,' he told Bloomberg. Trending: Invest Where It Hurts — And Help Millions Heal: While back-to-work mandates have been popular amongst many major corporations this year, Amazon has struggled to implement their's due to a lack of office space. Workers in Dallas, Phoenix, Atlanta and New York had their deadlines to return to the office pushed back four months while Amazon acquired more space. Amazon CEO Andy Jassy told employees in September that returning to an in-office work regimen was vital because 'collaborating, brainstorming and inventing are simpler and more effective.' 'If it's not for you, then that's OK. You can go and find another company if you want to. But for us, that's what we've decided is the best way to operate our company,' Amazon Web Services CEO Matt Garman said at a Wall Street Journal event in return-to-office push has not been without its complications, with parking space and commuting being among the complaints from former remote workers, the Journal reported. 'While we've heard ideas for improvement from a relatively small number of employees and are working to address those, these anecdotes don't reflect the sentiment we're hearing from most of our teammates,' a company spokeswoman told the Journal in February. 'What we're seeing is great energy across our offices.' On June 9 Pennsylvania Gov. Josh Shapiro announced that Amazon planned to invest 'at least $20 billion to establish multiple high-tech cloud computing and artificial intelligence (AI) innovation campuses across the Commonwealth of Pennsylvania.' The push would create 'at least 1,250 high-paying, high-tech jobs. Salem Township and Falls Township are the first communities identified as sites for these future campuses,' he said in a statement. It marks the largest capital investment in the commonwealth's history. Read Next: With Point, you can Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock This article Amazon Signs 141,000 Square Foot We Work Lease In Silicon Valley Amid Relentless Expansion And Back To Work Mandate originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
